The International Monetary Fund (IMF) has requested a detailed briefing on Pakistan’s $7.7 billion Reko Diq mining project as the country moves closer to financial close, signaling the Fund’s expanded oversight from balance-of-payments support to major national projects. The briefing, initially planned for this week, has been shifted to next week, according to reports.
The Reko Diq project[1], run by the Reko Diq Mining Company (RDMC), is a joint venture with Canada’s Barrick Gold holding 50% shares, while the federal and Balochistan governments own the remaining half equally. Backed by $3.5 billion in loans from global lenders, including a $700 million $1.2 billion commitment from the US Exim Bank, the project represents Pakistan’s largest-ever foreign direct investment.
Finance Ministry spokesman Qumar Abbasi said,
“The Reko Diq project is expected to make significant contributions not only to the mineral sector but also to the economy at large.”
Officials confirmed that sharing details of mega projects is crucial for development partners assessing Pakistan’s economic stability.
The project is projected to generate $70 billion in net cash flow over 37 years, nearly ten times Pakistan’s current forex reserves. It is also expected to create socio-economic benefits for Balochistan and strengthen Pakistan’s external position.
The IMF team, currently in Islamabad for the second review of Pakistan’s $7 billion bailout programme, is also assessing climate facility financing, under which Pakistan may receive $220 million. The finalisation of Reko Diq’s financial close is expected soon, making it one of the most critical developments in Pakistan’s economic landscape.
References
- ^ Reko Diq project (www.techjuice.pk)