The Pakistani government has approved the sale of a 15% stake in the Reko Diq copper-gold project, one of the world’s largest undeveloped resources of its kind, to Saudi Arabia for $540 million. The transaction will proceed under the Inter-Governmental Commercial Transactions Act.
Saudi Arabia will acquire the stake in two phases: the first phase involves purchasing a 10% stake for $330 million, followed by a 5% stake in the second phase for $210 million.
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The initial payment of $330 million is expected shortly after the first phase is finalized. This deal is a significant step in strengthening economic ties between Pakistan and Saudi Arabia.
Saudi officials have also expressed interest in exploring additional mineral opportunities in Balochistan’s Chagai district, Pakistan’s largest district by area.
Reko Diq is a key undeveloped copper-gold mine with immense potential for Pakistan’s economy. Jointly owned by the federal and Balochistan provincial governments, each holding 50% of the shares, its development is expected to generate substantial economic benefits, including job creation, infrastructure development, and long-term revenue.
This investment from Saudi Arabia reflects growing international confidence in Pakistan’s mining sector and aligns with Saudi Arabia’s strategy to diversify its investment portfolio. The agreement signifies a new chapter of strategic cooperation between Islamabad and Riyadh, with both nations set to benefit from the partnership.
