In a major boost to Pakistan’s mining and investment landscape, the International Finance Corporation (IFC)—the private sector arm of the World Bank Group—has committed $300 million in debt financing for the country’s flagship Reko Diq copper and gold mining project. The announcement, disclosed on Wednesday, marks a significant endorsement of the project’s potential and Pakistan’s efforts to attract long-term foreign investment.
Located in the Chagai District of Balochistan, Reko Diq is home to one of the world’s largest undeveloped deposits of copper and gold, making it a critical asset in Pakistan’s natural resources portfolio. The ownership structure of the mine reflects a public-private partnership, with Barrick Gold holding a 50% stake, and the remaining 50% equally shared between the federal government of Pakistan and the provincial government of Balochistan.
Reko Diq: A Game-Changer for Pakistan’s Mining Industry
Speaking at the Pakistan Minerals Investment Forum on Tuesday, Barrick Gold CEO Mark Bristow shared ambitious projections for Reko Diq. He revealed that the feasibility study completed in 2024 confirmed the site’s massive reserves of 15 million tons of copper and 26 million ounces of gold.
Bristow emphasized that the project is on track to become one of the lowest-cost copper producers globally, and described it as a “beacon that leads Pakistan” onto the international mining map. He added that such a high-profile, large-scale operation could transform both Balochistan’s economy and Pakistan’s reputation in the global mining sector.
IFC Investment Signals Global Confidence
The IFC’s $300 million debt package is more than just a financial contribution—it’s a strong vote of confidence from international financial institutions in Pakistan’s ability to deliver complex, high-value projects in a challenging environment. This move comes as part of a broader strategy by the World Bank Group, which has plans to invest up to $2 billion annually in Pakistan’s infrastructure sector over the next decade.
Such long-term funding commitments signal growing optimism in Pakistan’s efforts to reform its investment climate, especially in critical sectors like energy, transportation, and mining.
Strategic and Economic Implications
The significance of Reko Diq extends beyond just mining. As global demand for copper surges—driven by electric vehicles, renewable energy, and tech infrastructure—this project positions Pakistan as a potential key supplier in the global transition to green technologies.
Moreover, successful implementation of Reko Diq could serve as a blueprint for future foreign direct investment (FDI) in Pakistan. It showcases the possibility of effective public-private cooperation, proper legal frameworks, and robust security and governance mechanisms—all necessary to attract more international partners.
Challenges Ahead, But Optimism Grows
While Reko Diq is now gaining momentum, the project has faced years of delay due to legal, political, and regulatory hurdles. Past issues with contract enforcement and lack of due diligence led to costly international arbitration cases for Pakistan. However, the 2022 reconstitution of the project ownership structure and renewed investor interest suggest that lessons may have been learned.
Still, success will depend on sustained political stability, consistent policy execution, and efforts to ensure local communities benefit from the mining operations. The security situation in Balochistan, where Reko Diq is located, also remains a critical consideration for long-term investor confidence.
A Step Toward Economic Transformation
With the IFC’s investment and Barrick Gold’s active development of Reko Diq, Pakistan is taking a significant step toward leveraging its untapped mineral wealth. If managed transparently and efficiently, the project could not only boost exports and government revenue but also create jobs, develop infrastructure, and usher in a new era for Pakistan’s extractive industries.
As the world watches Pakistan’s mining sector unfold, Reko Diq may well become the success story that transforms global perceptions and puts Pakistan on the map as a competitive player in the global mining economy.
