Pakistan has received $5 billion in financing offers from global donors and development institutions for the Reko Diq copper and gold mining project in Balochistan, a response that far exceeds the project’s estimated funding requirement of $3 billion, The Express Tribune reported.
According to government sources, funding offers have come from major institutions, including the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC), and the United States Export-Import Bank (US Exim), which has offered financing with no upper limit.
Development agencies from Germany and Denmark have also expressed interest in participating, signalling strong international confidence in Pakistan’s mining sector.
The effort to reach financial close is being led by Petroleum Minister Ali Pervaiz Malik, with full support from the Special Investment Facilitation Council (SIFC). A recent webinar hosted by the Ministry of Petroleum in collaboration with the US Embassy aimed at attracting American investors. The ministry also organized a high-profile minerals conference, which generated several financing offers. Officials say these initiatives are part of a broader strategy to position Pakistan’s mining sector as a driver of economic growth.
Situated in the Chagai district, Reko Diq is believed to hold one of the world’s largest untapped reserves of copper and gold. The project, long delayed by legal and regulatory challenges, has been revived under a joint venture led by Canada’s Barrick Gold Corporation, which owns a 50% stake.
Production is expected to begin by 2028, with an initial investment of $5.5 billion. Mark Bristow, CEO of Barrick Gold, has said the project could generate $74 billion in free cash flow over 37 years.
The project is projected to deliver $2.8 billion in annual exports, create thousands of jobs, and spark economic development across the region. A second phase will see an additional $3.5 billion investment to expand production capacity to 400,000 tonnes of copper and 500,000 ounces of gold annually.
To support logistics and exports, the government is constructing a railway link connecting Reko Diq to Karachi Port in partnership with Pakistan Railways. This will allow efficient transportation of copper concentrate and gold to international markets.
Pakistan’s mineral sector, despite its vast potential, currently contributes only 3.2% to GDP, with a global export share at just 0.1%. The country hosts 92 identified minerals, with 52 commercially extracted, across 5,000 operational mines and over 50,000 SMEs.
In a parallel diplomatic development, Pakistan and the United States have signed a new trade agreement that will enable U.S. support in exploring Pakistan’s untapped oil reserves. The agreement also reduces tariffs to 19%, currently the lowest in South Asia, which officials hope will boost energy investment and mineral exports.
