Islamabad: Pakistan and Saudi Arabia are edging closer to finalizing a multibillion-dollar agreement on the Reko Diq copper and gold mining project, signaling a significant boost in economic cooperation between the two nations. Official sources report that the deal, currently in its advanced stages, is expected to be concluded in the coming months.
Under the proposed agreement, Saudi Arabia is set to acquire an initial 10% stake in the Reko Diq project, with the potential to increase its share in the future. This strategic investment underscores Saudi Arabia’s growing interest in Pakistan’s mining sector, particularly in one of the world’s largest undeveloped copper and gold reserves.
A major breakthrough in the negotiations was achieved when both sides resolved a dispute regarding foreign exchange arrangements. Initially, Saudi authorities had requested that a foreign exchange account for machinery procurement be maintained outside Pakistan. However, the two parties have now agreed that the foreign exchange will be brought into Pakistan, paving the way for smoother progress.
The revised valuation of project shares has been completed, with improved figures that have been shared with Saudi authorities. Negotiations are now focused on finalizing the finer points of the deal. “The deal is in its final stages and could be concluded soon, though no specific timeframe has been set,” a senior official involved in the talks revealed.
Located in Balochistan, Reko Diq is considered one of the largest undeveloped copper and gold mines globally. Its development has been a focal point for attracting foreign investment and strengthening economic ties between Pakistan and Saudi Arabia.
The project is expected to not only boost Pakistan’s mining sector but also enhance bilateral economic cooperation, reinforcing Saudi Arabia’s commitment to diversifying its investments under its Vision 2030 plan.
As the negotiations near conclusion, the Reko Diq deal is poised to become a cornerstone of Pakistan-Saudi Arabia economic relations, promising long-term benefits for both nations.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
