For the beleaguered economy of Pakistan, the Saudi investment through different projects offers a ray of hope.
The Saudi government has announced to pump in $540 million in the Reko Diq copper and gold project. Reko Diq mine is located in the Chaghi District of Balochistan in Pakistan. The mine is considered one of the world’s largest underdeveloped copper-gold areas. With an estimated reserve of 12.3 million tons of copper and 20.9 million ounces of gold, the development of Reko Diq is expected to have a significant impact on Pakistan’s struggling economy.
The production is stated to commence by 2028, aiming for an initial output of 200,000 tonnes of copper annually by 2029. Over a projected lifespan of 37 years, the Reko Diq project is expected to generate approximately $74 billion in free cash flow. Besides the Reko Diq project, Saudi Arabia’s Aramco plans to invest $10 billion to develop an oil refinery in Balochistan. Having a processing capacity of up to 300,000 barrels of crude oil daily, the refinery will definitely make Pakistan less dependent on the imported refined petroleum products.
The Saudi investment in Pakistan is a reflection of a strong relationship between both the countries. However, a disinformation campaign is underway to sabotage this relationship. Using social media platforms, the anti-Pakistan elements are actively engaged in disseminating false narratives regarding the projects.
Using social media platforms, the anti-Pakistan elements are actively engaged in disseminating false narratives.
The campaigns claim that these projects rob the local populace of resources. However, this is not true; the provincial government of Balochistan holds 25% stakes in the Reko Diq project, allowing the generated revenue to be used for human development projects in Balochistan.
Both the projects will also open plenty of job opportunities for the local Baloch population. For instance, during the peak construction phase of the Reko Diq project, it is estimated that up to 7,500 individuals will be engaged.
Once the production phase begins, the project is expected to generate approximately 4,000 long-term jobs for the local community.
In fact, the benefits of the project have already been accruing to the locals- in partnership with the Hunar Foundation, the Reko Diq Mining Company is training hundreds of young Baloch men and women from the Nokkundi area in certified skills such as IT, pipefitting, office assistance, electrical work, carpentry, and masonry.
Besides this, the firm has also been sending Baloch students abroad to equip them with necessary training. Last year, under its International Graduate Program (IGP), the company shortlisted 18 students from different districts of Balochistan for a two-year training program at mines operated by Barrick in Argentina and Zambia.
The nefarious disinformation campaign threatens not only to sow the seeds of discord between Islamabad and Riyadh but also to widen the gap between the state and Baloch people. Countering these false narratives requires a coordinated approach between Saudi and Pakistani authorities to disseminate factual information about the projects’ benefits as well as to develop a relationship of trust with the locals.
The writer is a freelance columnist.