Islamabad, October 7, 2025: In a major boost for Pakistan’s mining and investment sectors, a $3.5 billion financing agreement has been finalized for the Reko Diq copper and gold mining project, one of the country’s largest-ever industrial ventures.
According to official sources, six prominent international financial institutions — including the US EXIM Bank, Asian Development Bank (ADB), International Financial Institutions (IFIs), International Development Association (IDA), and the European Bank — have committed to the financing, alongside five other lenders, bringing the total to 11 participating institutions.
The financing package includes a 4- to 5-year grace period and a 12-year repayment schedule, with interest rates expected to remain in single digits. Disbursement of funds is expected to begin within 45 to 90 days, subject to compliance with lenders’ preconditions. The first tranche of the loan could be released within two months if all terms are met.
The total revised cost of the Reko Diq project now stands at approximately $7.7 billion, up from the earlier estimate of $4.8 billion, due to inflation, higher operational costs, and a six-month extension in the construction timeline.
The financing and equity structure is shared among Barrick Gold Corporation, the Government of Balochistan, and state-owned enterprises Oil & Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL). Barrick Gold retains a 55% equity stake, OGDCL and PPL collectively hold 27.7%, while the Government of Balochistan owns 16.6%.
Once operational, the Reko Diq project — expected to commence production by late 2028 — will have an estimated 37-year lifespan, generating about $90 billion in operating cash flow and $70 billion in free cash flow. Pakistan’s total expected earnings over the project’s life are projected at $53 billion.
The project is also expected to generate 7,500 jobs during the construction phase (2025–2028) and create 3,500 permanent positions once operations begin.
Beyond economic impact, Barrick Gold and its partners have launched community development initiatives in areas surrounding the project, including Humai, Mushki Chah, Nok Chah, and Durban Chah, where new safe drinking water facilities and seven primary schools have already been established.
Officials say the successful financial close of the project’s first development phase will mark a turning point for Pakistan’s mining and investment landscape, signaling renewed global confidence in the country’s economic potential.
