Pakistan Locks $3.5B Deal to Revive Reko Diq Mining Project

Key Points:

Pakistan finalizes $3.5 billion financing with six global lenders for Reko Diq revival.
Disbursement likely in 45–90 days, with favorable terms: 4–5 year grace, 12-year repayment, single-digit interest.
Project valued at $7.7 billion, projected to generate $53 billion revenue over lifetime.
Barrick Gold holds 55% equity, remaining held by OGDCL, PPL, and the Balochistan government.

ISLAMABAD (The Express Tribune) – October 8, 2025: Pakistan has secured a $3.5 billion financing package with six major international financial institutions to reignite the Reko Diq mining venture in Balochistan, one of the country’s most ambitious mineral development projects.

According to government sources, participating lenders include US EXIM Bank, the Asian Development Bank (ADB), and several European and development finance institutions. The agreement still awaits final board approvals, but disbursement is expected to begin within 45 to 90 days once conditions are met.

Under the terms, the loans will feature a 4 to 5-year grace period, followed by a 12-year repayment schedule, with single-digit interest rates — a favorable structure designed to ease the financial burden during early construction phases.

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In the equity structure, Barrick Gold Corporation will hold 55%, while OGDCL, PPL, and the Balochistan government will share the remaining equity.

The Reko Diq project is projected to cost around $7.7 billion, with a targeted production start by 2028. Over its lifetime, it is expected to generate $53 billion in revenue, delivering substantial fiscal benefits to both the federal government and Balochistan province.

Officials estimate the province will gain $11 billion in fiscal revenue, along with $6 billion as its provincial share and $9 billion through its equity stake. The federal government is likewise forecast to collect around $11 billion in fiscal turnover.

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Security and administrative teams are moving ahead with preparatory work, and stakeholders emphasize that timely fulfillment of conditions—such as environmental clearances, infrastructure guarantees, and due diligence—will be critical to unlocking the first tranche of funding.

Strategists see this agreement as more than a financial milestone—it is a signal to international investors about Pakistan’s resolve to harness its mineral potential and diversify its economy beyond traditional sectors. The revival also helps resolve decades of legal and arbitration disputes surrounding Reko Diq, strengthening investor confidence in the country’s mining policies and regulatory stability.

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