ISLAMABAD, March 18, 2025 – The Economic Coordination Committee (ECC) has approved an upward revision of $500 million in the cost and development plan of the Reko Diq project, raising the total estimated valuation from $6.2 billion to $6.7 billion.
Saudi Arabia’s Interest in Reko Diq
The increase in valuation comes as Pakistan continues negotiations with Saudi Arabia, which has shown interest in acquiring stakes in the massive gold and copper mining project.
- A final deal is yet to be reached, but officials expect the federal government may sell stakes to Saudi Arabia within the ongoing financial year (2024-25).
- The revised valuation could pave the way for further foreign investment.
Why the Cost Has Increased
According to officials, the cost escalation is due to:
Inflationary pressures
Enhanced project scope
Upgraded capacity and energy mix
Alternative water supply options
Modernized processing plants and machinery
ECC Meeting and Official Statements
The ECC meeting, chaired virtually by Finance Minister Muhammad Aurangzeb from China, was attended by:
- Petroleum Minister Ali Parvez Malik
- Commerce Minister Jam Kamal Khan
- Board of Investment Minister Qaiser Ahmed Sheikh
- SECP Chairman and senior officials
The Ministry of Finance released an official statement but did not disclose specific details regarding the cost escalation. However, the ECC emphasized the national importance of the Reko Diq project and directed the Ministries of Petroleum and Finance to ensure timely implementation of all actions.
Other Approvals: Sports Development in Skardu
In addition to Reko Diq, the ECC also approved:
Rs 200 million technical supplementary grant for the construction of the PSB Coaching Centre in Skardu.
The Ministry of Interprovincial Coordination has been instructed to ensure the facility remains operational and serves as a high-altitude training center for athletes.
Conclusion
With increasing global interest in Reko Diq and Pakistan’s push for foreign investment, the project’s valuation hike signals growing confidence in its potential. The coming months will be crucial as Saudi Arabia’s potential stake acquisition takes shape.
