ISLAMABAD – June 5, 2025:
In a transformative development for Pakistan’s economy, the Reko Diq Copper Project is projected to add nearly 1 percent to the national GDP annually, positioning it as one of the most significant industrial undertakings in the country’s history.
According to Dr. Tauqir Shah, Special Assistant to the Prime Minister, the latest major financing secured from the International Finance Corporation (IFC) — including a $300 million direct loan and $400 million in blended finance — has laid a solid foundation for the project’s long-term success. The funding also marks the IFC’s first mining investment in Pakistan, signaling renewed global confidence in the country’s investment landscape.
“The IFC is not only a financial partner but also the lead lender and environmental and social coordinator, ensuring alignment with international standards and sustainable practices,” Dr. Shah told The News.
In total, the IFC and World Bank have approved $700 million in concessional funding, expected to unlock private sector investments of up to $2.5 billion, he added.
Economic Game-Changer for Pakistan
Dr. Shah emphasized that the Reko Diq project, once operational, could generate up to $2 billion annually in gross value added, equivalent to around 1 percent of Pakistan’s GDP based on 2024 figures. Moreover, with 100 percent of revenue expected in foreign currency, the project promises critical support for Pakistan’s balance of payments and foreign exchange reserves.
Operated by Reko Diq Mining Company (Private) Limited (RDMC) — a joint venture led by Canada’s Barrick Gold Corporation (50%), and Pakistani stakeholders including three state-owned enterprises and the Government of Balochistan (25% each) — the mine hosts one of the world’s largest untapped copper reserves.
With an estimated 40-year mine life, the project is expected to produce 200,000 to 250,000 tons of copper annually, at a time when global demand for the metal is surging due to the clean energy transition and global infrastructure expansion.
Jobs, Development & Inclusion
At its construction peak, Reko Diq will create up to 10,000 jobs, with priority given to local Baloch workers. Once operational, the mine will sustain approximately 3,000 direct jobs and thousands more through indirect and supply chain employment.
RDMC has also committed to inclusive hiring, with targeted initiatives to enhance female participation. Already, over $2.5 million has been invested in local infrastructure, education, healthcare, clean water access, and food security.
Furthermore, the company has pledged to allocate 1 percent of construction costs and 0.4 percent of annual revenue toward community-led development initiatives throughout the project’s lifecycle.
Catalyst for Broader Regional Development
Officials noted that development of power, water, and transport infrastructure linked to Reko Diq could stimulate wider mineral exploration and investment across Balochistan and beyond. However, they acknowledged major challenges — including the need for Pakistan Railways to upgrade lines from Reko Diq to Karachi and build new rail routes to Gwadar Port to maximize economic integration.
A senior government source expressed frustration over decades of inaction:
“It’s a sad commentary on governance that a world-class resource, lying near the surface, remained untapped for over three decades. This is an epic story of missed opportunities, poor decision-making, and judicial overreach.”
Conclusion
With robust international backing, a focus on sustainability, and strong community engagement, the Reko Diq project is poised to reshape the economic landscape of Balochistan and serve as a blueprint for responsible resource development in Pakistan.
