Saudi Arabia Eyes Stake in Reko Diq Mine as Pakistan Seeks Economic Boost
In a significant development for Pakistan's economic landscape, Saudi Arabia has expressed keen interest in acquiring government shares in the Reko Diq gold and copper mine. A South Asian official revealed that an international adviser is on the verge of completing a valuation for the potential investment.
Karobar
Currently, Barrick Gold Corp holds a 50% stake in the mine, with the remaining 50% owned by the governments of Pakistan and the province of Balochistan. Barrick describes the mine as one of the largest undeveloped copper-gold areas globally.
Jahanzeb Khan, associated with the Prime Minister’s Special Investment Facilitation Council, stated that the government aims to conclude the evaluation process by December 25. Previously, Pakistan had announced Barrick's plan to invest $10 billion in the project. In August, Barrick expressed openness to Saudi Arabia joining as a partner.
Once the evaluation is complete, Islamabad intends to engage in discussions with Riyadh to understand their expectations. As of now, the Saudi government has not issued a response.
Given Pakistan's recent economic challenges, narrowly avoiding a financial crisis earlier this year with a last-minute $3 billion rescue from the International Monetary Fund (IMF), the country is actively seeking foreign investment to bolster its dwindling foreign exchange reserves. In this pursuit, Pakistan is turning to its longstanding allies in the Middle East, particularly Saudi Arabia.
Jahanzeb Khan emphasized that while Pakistan desires Saudi involvement, they are not in a rush to finalize the deal. The government aims to protect its national interests and avoid hasty asset sales.
