Pakistan finalizes $3.5B financing deal for Reko Diq mine
Landmark agreement with global lenders paves way for massive copper-gold project; first disbursement expected within two months
Business Desk
The Business Desk tracks economic trends, market movements, and business developments, offering analysis of both local and global financial news.

A view of the Reko Diq mine in Balochistan
Barrick Gold website
Pakistan’s government has finalized a $3.5 billion financing agreement for the Reko Diq copper and gold mining project, marking a significant milestone in one of the country’s largest-ever foreign investment initiatives, according to official sources.
The deal, facilitated by the Special Investment Facilitation Council (SIFC), involves six global donor agencies, including the U.S. EXIM Bank and the Asian Development Bank (ADB).
The agreement also includes participation from 11 international financial institutions and development partners, such as the International Finance Corporation (IFC), the International Development Association (IDA), and the European Bank for Reconstruction and Development (EBRD).
According to sources familiar with the matter, the funds will begin disbursing after the completion of required conditions over the next 45 to 90 days. A grace period of 4 to 5 years has been agreed upon, with full repayment scheduled over a 12-year horizon.
First disbursement expected within two Months
Under the implementation plan, the first loan tranche could be received within two months. Of the $4.2 billion in total project responsibility, the largest share falls to Barrick Gold, the Government of Balochistan, and state-owned enterprises including the Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).
Barrick Gold will hold a 55% equity stake, while OGDCL and PPL will collectively hold 27.7%. The Government of Balochistan will maintain a 16.6% stake.
Revised Cost Estimate Reaches $7.7 Billion
The total revised cost of the Reko Diq project has climbed to $7.7 billion, up from a previously estimated $3 billion in external financing. The increase is attributed to inflation, rising operating costs, and an extension of the construction timeline by six months.
If project costs increase further, approval from the Economic Coordination Committee (ECC) will be sought.
Production Timeline and Project Lifespan
First production is expected by the end of 2028. The mine is projected to operate for 37 years, during which time it is expected to generate $90 billion in operating cash flow and $70 billion in free cash flow, sources said.
Pakistan’s projected earnings from the project are estimated at $53 billion, with $11 billion in fiscal revenue, $6 billion in provincial royalties, and $9 billion through Balochistan Mineral Resources Limited’s equity.
For the federal government, expected revenues include $11 billion in fiscal gains and $15 billion in equity inflows via Pakistan Minerals Private Limited (PMPL).
Financing Under Limited-Risk Model
The $3.5 billion in financing will be secured under a limited-risk structure, protecting Pakistan’s sovereign position while allowing for large-scale foreign investment.
Community Development and Employment
The Reko Diq project is already delivering local development benefits. Clean drinking water facilities have been provided in nearby areas such as Humai, Mushki Chah, Nok Chah, and Darban Chah.
Seven primary schools established by the project are offering quality education, improving opportunities for local children.
During the construction phase (2025–2028), the project is expected to create approximately 7,500 jobs. Once operational, around 3,500 permanent staff and contractors will be employed.
Global Confidence in Pakistan’s Mining Sector
Industry experts believe that the financial close of Reko Diq’s first development block will significantly boost global investor confidence in Pakistan’s mining and natural resource sectors.
“This is a transformative moment for Pakistan,” said a market observor. “Reko Diq has the potential to be among the world’s top five mining projects, both in scale and strategic value.”
The Reko Diq copper-gold mine, located in Balochistan, is considered one of the largest undeveloped mining assets globally, and its successful financing marks a historic turning point for Pakistan’s economic future.
Comments
See what people are discussing