Pakistan has finalized a $3.5 billion financing agreement with six major international financial institutions for the development of the historic Reko Diq mining project in Balochistan, a milestone for one of the country’s largest mining companies.
According to official sources, the financing package includes commitments from major global lenders such as the US EXIM Bank, the Asian Development Bank, the International Financial Institutions, the International Development Association and the European Bank.
The agreement was signed by the project sponsors, the federal government and Barrick Gold Corporation, while final approval by the lenders’ boards remains pending. Once approved, the disbursement process is expected to begin within 45 to 90 days, subject to compliance with the agreed conditions.
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Under the terms of the agreement, lenders will be given a grace period of four to five years, with loan payments spread over a 12-year schedule. The financing will have a single-digit interest rate, offering Pakistan a relatively favorable borrowing framework.
Officials said if all prerequisites are completed on time, the first tranche of funds could be released within two months.
Key stakeholders in the project include Barrick Gold Corporation, Government of Balochistan, Oil and Gas Development Company Limited and Pakistan Petroleum Limited.
As per the agreed capital structure, Barrick Gold will retain a 55 per cent stake, while OGDCL and PPL will jointly hold 27.7 per cent. Balochistan will retain a shareholding of 16.6 per cent.
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With a total estimated cost of around $7.7 billion, the Reko Diq project is expected to begin production in late 2028.
According to official estimates, the project could generate approximately $53 billion in total revenue over its lifetime. Balochistan is expected to receive $11 billion in tax revenue, $6 billion as a provincial share and $9 billion through equity ownership of Balochistan Mineral Resources Limited.
The federal government is expected to earn around $11 billion in tax revenue, while Pakistan Minerals Private Limited will benefit from approximately $15 billion in capital inflows.
