ISLAMABAD – Pakistan has finalized a $3.5 billion financing agreement with six international financial institutions for Balochistan’s historic Reko Diq project.
Reports revealed that the agreement involves the U.S. EXIM Bank, Asian Development Bank (ADB), International Financial Institutions, International Development Association (IDA), and the European Bank.
According to details, these institutions will begin the financing process within 45 to 90 days after meeting the agreed conditions. The agreement provides donors a grace period of 4 to 5 years, with full loan repayment scheduled over 12 years.
It was agreed that the financing interest rate would remain in the single-digit range.
Officials stated that if conditions are met swiftly, the first installment could be released within two months. The financing partners include Barrick Gold, the Government of Balochistan, OGDCL, and PPL.
Under the agreement, Barrick Gold holds a 55% equity share, OGDCL and PPL together have 27.7%, while the Government of Balochistan holds 16.6%. The total project cost is estimated at around $7.7 billion, with production expected to begin by the end of 2028.
The Reko Diq project is projected to generate $53 billion in revenue for Pakistan — including $11 billion in fiscal revenue for Balochistan, $6 billion in provincial share, $9 billion through Balochistan Mineral Resources Limited’s equity, $11 billion in federal fiscal revenue, and $15 billion from PMPL equity inflows.
Officials also noted that the project has already provided clean drinking water in Humai, Mushki Chah, Nok Chah, and Darban Chah, while seven primary schools are delivering quality education. During construction, the project will employ about 7,500 people, and around 3,500 permanent employees and contractors will work in the production phase.
