ISLAMABAD, August 2, 2025 — International financial institutions and multilateral agencies have offered more than $5 billion in financing to support the Reko Diq copper-gold mining project in Balochistan, exceeding the estimated funding requirement for its first phase, sources told The Express Tribune .
The ambitious project — now estimated at $6.6 billion for Phase I, with a revised total price tag of up to $9 billion across two phases — is being backed by a consortium that includes the International Finance Corporation (IFC), International Development Association (IDA), Asian Development Bank (ADB), U.S. Exim Bank, Canada’s EDC, Japan’s JBIC, Germany’s KfW, Sweden’s EKN, and Finland’s Finnvera .
Two financing packages already approved by the World Bank Group amount to $700 million, with $300 million from the IFC and $400 million through the IDA’s blended finance facility . These concessional loans are expected to catalyze up to $2.5 billion in private sector investment towards the project’s implementation .
Pakistan’s Finance Minister Muhammad Aurangzeb, in a Senate standing committee meeting, described the approval as a diplomatic victory, highlighting how Pakistan overcame active pressure from India to block funding at the World Bank Group level .
The Reko Diq mine is set to become one of the world’s largest undeveloped copper-gold projects. Operations are expected to begin in 2028 with a projected 40-year mine life producing up to 200,000 tonnes of copper and 250,000 ounces of gold annually — figures that may extend further if additional deposits are confirmed . The project could boost Pakistan’s GDP by roughly 1%, generate nearly $2 billion in gross value added annually, and strengthen foreign exchange reserves via export revenues in foreign currency .
At its peak, the construction phase is expected to create up to 10,000 jobs, with long-term employment sustaining around 4,000 local positions — inclusive of women and prioritized Balochistani residents . Through sustainability-linked financing, the project will also fund community development: allocating 1% of construction costs and 0.4% of annual revenues toward health, education, and infrastructure programs led by local community committees .
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As Pakistan intensifies its push for foreign direct investment to stabilize its fragile economic situation, the Reko Diq project has risen to symbolic prominence. Supported by the Special Investment Facilitation Council (SIFC), which aims to bring in $5 billion in FDI, the project is expected to pave the way for scaling up investment in Balochistan’s mineral sector .
Global interest is also growing: Saudi Arabia’s Manara Minerals is negotiating to acquire 10–20% equity stake valued between $500 million and $1 billion, further reinforcing the project’s status as a regional economic gateway in an era of Islamic strategic cooperation .
In addition, Barrick Gold — the project operator and 50% equity holder — views Reko Diq as potential leverage in U.S.-Pakistan trade and mineral diplomacy, with U.S. creditors actively involved in export credit and financing discussions .
Ribbon-cutting for large-scale construction and infrastructure rollout is expected to commence in the second half of 2025, pending final project finance signing . First copper and gold production is targeted by year-end 2028. The second phase — powered by revenues from Phase I — will fully unlock Reko Diq’s potential.