02 August,2025 01:06 PM IST | Islamabad | mid-day online correspondent
Donald Trump. Image/File Pic
Soon after Donald Trump announced a trade deal with Pakistan and slammed 25 percent tariffs on India, Pakistan now received a USD 5 billion offer from multinational donors and agencies to execute the multibillion-dollar Reko Diq copper and gold mining project. The Asian country has received the money to establish a mining project in the Balochistan region, according to a media report.
As per the reports from news agency PTI, the commitments received from foreign donors were more than the funding requirement for the Reko Diq project, which is estimated at USD 3 billion, sources told various other sources reporting the developments.
The Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC), and US Exim Bank are some of the donors who have come forward. Also, the development agencies from Germany and Denmark have offered financing for mining projects in Balochistan.
As reported by news agency PTI, the financial close of the project is at an advanced stage, and Petroleum Minister Ali Pervaiz Malik, backed by the Special Investment Facilitation Council (SIFC), is taking the lead and making aggressive efforts to expedite work, which will pave the way for exploring the entire potential of the mining sector.
It is worth noting that the US Exim Bank has provided no funding limits and is willing to supply capital, which Pakistan and other partners sorely want.
The Pakistani Ministry of Petroleum recently hosted a webinar in collaboration with the US Embassy to entice American investors to participate in mining projects in Pakistan.
The state-owned exploration firm Oil and Gas Development Company (OGDC) is a significant partner in the Reko Diq project, and preparations are underway to begin construction.
Pakistan is rich in mineral resources, which have enormous potential for driving economic growth and industrial development. The country's substantial mineral reserves, which include coal, copper, gold, iron ore, chromite, and precious stones, provide a stable foundation for the mining industry to prosper and contribute to economic development.
Its mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tonnes of minerals annually.
The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers.
Some of the country's most notable mineral reserves include the world's second-largest salt mines, the fifth-largest copper and gold deposits, and significant coal reserves. Furthermore, Pakistan holds vast quantities of bauxite, gypsum, and precious stones such as ruby, topaz, and emerald, which offer considerable export potential.
Despite the potential, the mineral sector currently contributes around 3.2% to the gross domestic product, with exports accounting for only 0.1% of the world's total. However, with increasing exploration, foreign investment, and infrastructure improvements, the mining industry is poised for significant expansion.
The local mining sector is increasingly attracting foreign investment, with global firms eyeing the untapped mineral reserves.
The project, revived by Canada's Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of USD 5.5 billion.
According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project, the reserves are expected to generate USD 74 billion in free cash flow over the next 37 years, according to the paper.
(With inputs from PTI)
