ISLAMABAD:
In a significant win for Pakistan, the International Finance Corporation (IFC) and the World Bank have approved a concessional loan of $700 million for the Reko Diq project, a major mining and resource development initiative.
This approval, granted during a board meeting in Washington, is a significant diplomatic victory for Pakistan and a major setback for India, which had actively lobbied against the funding.
As a result of this approval, the private sector is expected to invest $2.5 billion in the Reko Diq project, one of Pakistan’s most important initiatives. Dr Tauqeer Hussain Shah, advisor to the prime minister, played a key role in this achievement. He spearheaded efforts at the World Bank, successfully lobbying for the loan.
In April, the IFC had said that it will provide $300 million in debt financing for the Reko Diq copper-gold mining project.
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Barrick Gold’s copper and gold project intends to lock in upwards of $2 billion in financing from international lenders, with term sheets signed by early Q3, its project director for the mine told Reuters.
The funding will support the development of the Reko Diq mine, one of the world’s largest underdeveloped copper-gold deposits, which is hoped to generate $70 billion in free cash flow and $90 billion in operating cash flow.
Barrick Gold and the federal and Balochistan governments own the project jointly. The financing for phase one of the project, which is expected to start production in 2028, is being discussed with multiple lenders.
In an interview with Reuters at the Minerals Investment Forum 2025, Reko Diq’s Project Director Tim Cribb said the mine was looking at $650 million from the IFC and International Development Association.
Cribb added that the mine was also in talks with the US Export-Import Bank for $500 million-$1 billion in financing, as well as $500 million from development finance institutions, including the Asian Development Bank, Export Development Canada and Japan Bank for International Cooperation.
“We expect to close the term sheet in either late Q2 or early Q3,” said Cribb.
He said railway financing talks were underway with the IFC and other lenders, with infrastructure costs estimated at $500-800 million, with roughly $350 million as the initial cost.
A recent feasibility study has upgraded the project’s scope, with phase one throughput increasing to 45m tonnes per annum from 40m, and phase two throughput rising to 90m tonnes per annum from 80m.
The mine life has been revised from 42 years to 37 years due to the rising throughput, although the company believes unaccounted-for minerals could extend the life to 80 years.
The cost of phase one has also been revised upwards to $5.6 billion from $4 billion. The World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade.
This loan approval strengthens Pakistan’s economic position and highlights its diplomatic efforts in securing vital investments for the nation’s future. The backing of this large-scale project is particularly significant in light of regional geopolitical tensions, with India actively seeking to block the project’s financing.
With this decision, Pakistan has taken a crucial step forward in securing the success of the Reko Diq project, which is expected to play a pivotal role in the country’s resource development sector.
