Reko Diq Project Secures $700 Million Loan
The loan is part of a larger financing package for the project, which is expected to support the development of one of the world's largest copper mines. The project's success will depend on the effective implementation of the loan and the ability of the mining company to meet its sustainability and social responsibility commitments.
The World Bank Group has approved a $700 million loan for the Reko Diq mining project, despite opposition from India, to support the project's $3 billion financing needs. The loan will be provided by the International Finance Corporation (IFC) and the International Development Association (IDA), with the IFC contributing $300 million and the IDA extending $400 million.
The Reko Diq gold and copper mining project is expected to generate significant economic benefits for Pakistan, with the World Bank Group estimating that it could contribute around $2 billion annually to the country's economy. The project is also expected to create up to 10,000 jobs during the construction stage, with a focus on local recruitment and female employment. The mining company plans to contribute to local development projects and adhere to sustainability-linked financing.
The federal government has also allocated significant funds for security measures for the project, with Rs 3.743 billion spent under a supplementary grant for fiscal year 2024-25. The funds will be managed through a dedicated cost centre and will cover specific operational security costs, not salaries or allowances of Frontier Corps personnel. The project is expected to begin production by the end of 2028 and will be one of the world's largest copper mines once fully developed.
The approval of the loan marks a significant milestone for the Reko Diq project, which has faced opposition from India. The project's success is expected to have a positive impact on Pakistan's economy and provide significant benefits to local communities. With the World Bank Group's support, the project is now poised to move forward and realize its full potential.