Pakistan’s Reko Diq Project Gets $5B Boost has secured over $5 billion in financing for the Reko Diq mining project in Balochistan. This exceeds the original funding target of $3 billion. Major donors include the Asian Development Bank, Islamic Development Bank, International Finance Corporation, and the US Exim Bank. Development agencies from Germany and Denmark have also offered support.
The project’s financial close is now in its final stages. Petroleum Minister Ali Pervaiz Malik, with support from the Special Investment Facilitation Council (SIFC), is leading the effort. The US Exim Bank has pledged large-scale support, with no limit on funding. Recently, the Ministry of Petroleum also hosted a webinar with the US Embassy to draw American investors.
Reko Diq, located in Chagai district, holds one of the largest untapped copper and gold reserves in the world. Canada’s Barrick Gold is managing the project. Production is expected to begin by 2028. The first phase investment of $5.5 billion is projected to create $74 billion in free cash flow over 37 years.
Annual exports from Reko Diq are expected to reach $2.8 billion. Thousands of jobs will be created. The expansion phase will raise copper production to 400,000 tonnes and gold output to 500,000 ounces yearly, requiring another $3.5 billion in investment.
The government has approved selling a 15% stake in the project to Saudi Arabia’s Manara Minerals, which will bring in $1 billion. A dedicated railway track will support logistics, helping move materials to Karachi for export. This project boosts Pakistan’s image as a growing destination for mining investments and economic growth.