Pakistan secures $3.5 billion financing deal for Reko Diq project

ISLAMABAD: Pakistan has successfully secured $3.5 billion in international financing for the Reko Diq copper and gold mining project in Balochistan, sources said on Tuesday.

This milestone achievement has been made possible through the efforts of the Special Investment Facilitation Council (SIFC) — a civil-military coordination body established to streamline and accelerate foreign investments in strategic sectors.

The financing agreement involves a consortium of 11 lenders, including six major donor agencies such as the U.S. Export–Import Bank (EXIM), the Asian Development Bank (ADB), International Financial Institutions (IFIs), the International Development Association (IDA) of the World Bank, and a European bank.

Sources revealed that the deal marks a historic breakthrough for Pakistan’s economy and reflects growing international confidence in the country’s investment.

Loan repayment is scheduled over a period of 12 years with a grace period of 4 to 5 years from the donor agencies.

The first tranche of financing could be received within two months, once initial requirements are met.

Earlier, it ws reported that Finnish multinational Metso is planning to invest in Pakistan’s copper mining sector, with a particular focus on the Reko Diq project.

The company aims to supply advanced mining equipment and provide training to develop local human resources.

The potential collaboration was discussed during a meeting between Ms. Piia Karhu, President of Minerals at Metso, and Mr. Bilal Azhar Kayani, Pakistan’s Minister of State for Finance and Railways.

Talks focused on investment opportunities in Pakistan’s mineral sector—especially copper mining. Metso will supply modern mining technology and equipment and train the local human resources. She shared their company’s future plan of participating in Reko Diq project by providing mining technology and services.