The Reko Diq Copper Project is set to significantly impact Pakistan’s economy, with projections indicating an annual contribution of nearly 1% to the country’s GDP, as reported by The News. This positions it as one of the most vital industrial undertakings in Pakistan’s history.
Dr. Tauqir Shah, a senior advisor to the prime minister, stated, “Backed by the latest major financing package from the International Finance Corporation (IFC) – including a US$300 million direct loan and US$400 million in blended finance – the project marks IFC’s first mining investment in Pakistan and signals renewed global confidence in the country’s economic potential.”
Speaking to The News, he further elaborated that the IFC will also serve as the lead lender and environmental and social coordinator, ensuring the project adheres to international standards and sustainable practices.
Recently, the IFC and the World Bank approved a concessional loan of $700 million for the Reko Diq project. A media report claimed that this approval is expected to catalyze private sector investment of $2.5 billion into the Reko Diq project. Dr. Shah played a pivotal role in securing this achievement.
The PM’s adviser asserted that Reko Diq is poised to become a cornerstone of Pakistan’s economy, potentially generating up to US$2 billion annually in gross value added—equivalent to approximately 1% of the country’s GDP based on 2024 figures. The project will also provide crucial foreign currency earnings, with 100% of revenues expected in foreign exchange.
Spearheaded by Reko Diq Mining Company (Private) Limited (RDMC), the venture is anticipated to become one of the world’s largest copper mines, unlocking immense economic, social, and environmental opportunities for the nation.
Owned by Canada’s Barrick Gold Corporation (50%), alongside Pakistani stakeholders including three state-owned enterprises (25%) and the government of Balochistan (25%), the Reko Diq mine boasts one of the planet’s largest untapped copper reserves.
“With a projected mine life of 40 years, the operation is set to yield 200,000–250,000 tonnes of copper annually—at a time when global demand for copper is soaring, fueled by the clean energy transition and infrastructure growth,” Dr. Shah informed.
He added that during its peak construction phase, the project is expected to create up to 10,000 jobs, with a focus on prioritizing local Baloch workers across all skill levels. In its operational phase, the mine will support approximately 3,000 direct jobs and thousands more through indirect and supply chain employment.
Significantly, RDMC is committed to inclusive hiring, implementing targeted programs to enhance female participation in the workforce. Already, RDMC has invested US$2.5 million into local infrastructure, education, health services, clean water initiatives, and food security. The company has pledged to contribute 1% of construction costs and 0.4% of annual revenue to community-led development throughout the mine’s lifespan.
Meanwhile, official sources indicated that with supporting infrastructure in power, water, and transport currently under development, Reko Diq could pave the way for further mineral exploration and broader regional investment.
As one of the most ambitious mining projects ever undertaken in Pakistan, Reko Diq is poised to reshape Balochistan’s economic future. With international backing, adherence to environmental and social safeguards, and deep community engagement, the project could serve as a blueprint for responsible resource development across the country, the sources explained.
A challenge for Pakistan Railways is to upgrade railroads from Reko Diq to Karachi and to construct a new railway route from Reko Diq to Gwadar port.
However, a senior official source lamented: “Considering that this huge reservoir of global proportions was always there—and almost on the surface—it is a sad commentary on governance and decision-making of successive governments who failed to use this natural resource for the welfare of people and the country.” He added: “This is an epic story, of whimsical decision making, incompetence and misplaced judicial activism, which wasted the nation’s three to four decades.”
