Pakistan has secured a $3.5 billion financing agreement with six leading international financial institutions to fund the historic Reko Diq project in Balochistan.
According to official reports, the financing partners include the U.S. EXIM Bank, Asian Development Bank (ADB), International Financial Institutions, International Development Association (IDA), and the European Bank. These institutions will begin the financing process within 45 to 90 days once all agreed conditions are fulfilled.
The agreement offers a grace period of four to five years, with full loan repayment scheduled over the next 12 years. Officials confirmed that the financing interest rate will remain within the single-digit range to ensure sustainable repayment.
If the preconditions are met promptly, the first installment of the funding may be released within two months. The Reko Diq project is jointly owned by Barrick Gold, the Government of Balochistan, the Oil and Gas Development Company Limited (OGDCL), and Pakistan Petroleum Limited (PPL).
Under the equity structure, Barrick Gold holds 55% of the shares, while OGDCL and PPL together own 27.7%. The Government of Balochistan retains a 16.6% stake in the project. The total estimated cost of the venture stands at around $7.7 billion, with production expected to start by the end of 2028.
Officials project that the Reko Diq project will generate approximately $53 billion in total revenue for Pakistan. This includes $11 billion in fiscal revenue for Balochistan, $6 billion as provincial share, $9 billion through Balochistan Mineral Resources Limited’s equity, $11 billion in federal fiscal revenue, and $15 billion from PMPL equity inflows.
Beyond economic growth, the project has already made a social impact by providing clean drinking water to several areas, including Humai, Mushki Chah, Nok Chah, and Darban Chah. Additionally, seven primary schools have been established to ensure quality education for local children.
During the construction phase, the project is expected to employ about 7,500 workers. Once operational, around 3,500 permanent employees and contractors will work on site, contributing to long-term job creation and regional development.
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