Saudi Arabia has proposed a 15% investment in Pakistan's Reko Diq mining project through Manara Minerals, facilitated by the SIFC. The offer also includes a grant for road infrastructure development around the project site.
The SIFC has approved the proposal framework, but the final decision rests with Pakistan's Cabinet Committee on Inter-Governmental Commercial Transactions. A negotiation committee will review pricing and finalize the agreement with Manara Minerals.
Currently, Barrick Gold owns 50% of the Reko Diq project, with 25% held by three federal government entities and 25% by Balochistan province. Barrick Gold expects to complete the project's feasibility study by December 2024, with initial production anticipated by 2028.
Pakistan aims to attract up to $5 billion in Saudi investment in mining and agriculture by June 2025. To address concerns about profit repatriation, the State Bank of Pakistan has been instructed to prioritize returns for Saudi companies.
The potential agreement is expected to strengthen economic ties between Pakistan and Saudi Arabia, potentially creating job opportunities for Balochistan's youth. Development of adjacent blocks is also anticipated once commercial operations begin at Reko Diq.
