Saudi Arabia Invests in Pakistan's Reko Diq Project

Pakistan's federal cabinet has approved a historic investment deal with Saudi Arabia, allowing the Kingdom to acquire a 15% stake in the Reko Diq copper-gold mine for $540 million. This partnership is set to unlock significant economic potential for Pakistan and strengthen its national economy.

The deal, approved by the federal cabinet, includes two installments with an initial payment of $330 million for 10% shares and an additional $210 million for 5% shares in the second phase. The Reko Diq project, one of the world's largest undeveloped copper-gold mines, is valued at $6 billion and holds substantial copper and gold deposits. The investment is expected to provide a significant financial boost to Pakistan's economy, bolster its foreign exchange reserves, and create jobs in the country.

The partnership marks a new era of collaboration between Pakistan and Saudi Arabia, with both countries poised to reap significant benefits from this agreement. Saudi Arabia's investment in the Reko Diq project is also seen as a vote of confidence in Pakistan's mining sector, which has faced challenges in the past, including a $6 billion damage claim by Tethyan Copper Company (TCC) for alleged irregularities. However, the Pakistani government reached a settlement with TCC, allowing the project to proceed.

The $540 million investment by Saudi Arabia is the latest in a series of foreign investments in Pakistan's mining sector, which has been a crucial part of the country's economic development strategy. The partnership with Saudi Arabia is expected to have far-reaching benefits for Pakistan, including the creation of jobs, infrastructure development, and long-term revenue streams for both the federal and provincial governments.