Saudi Arabia plans to invest up to $1 billion in Pakistan's Reko Diq Copper-Gold Project located in Balochistan Province, according to sources within Pakistan's finance ministry.
According to these sources, this investment will involve Saudi Arabia purchasing shares from two key Pakistani entities - Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).
Next month, when investment begins, Prime Minister Shehbaz Sharif will establish a committee with representatives from OGDCL, PPL, and the energy ministry to oversee it.
Once formed, this committee will travel to Saudi Arabia for final negotiations related to investment; ultimately culminating in the signing of an agreement between Pakistan and Saudi Arabia.
Previous governments have promoted the Reko Diq Project as a game-changer, asserting that it could provide considerable financial benefits for Balochistan; with up to 33% of project revenues potentially flowing back into Balochistan province.
Last year, Barrick Gold, one of the main stakeholders in this project, expressed interest in inviting Saudi Arabia's Public Investment Fund (PIF) as a partner in developing the mine.
Recently, the Special Investment Facilitation Council (SIFC) approved consulting services to assist Saudi Arabia with joining the project, with both Pakistan and Barrick Gold anticipating reducing their shareholdings to accommodate Saudi Arabia's investment.
Barrick Gold and Pakistan ultimately agreed in 2022 to end their longstanding dispute and resume the development of the project under new ownership structures.
As part of their agreement, Barrick Gold retained a 50% stake in the project while equally splitting their remaining 50% with both the federal and provincial governments of Pakistan.
Saudi Arabian investment will provide much-needed momentum to Pakistan's Reko Diq Project and mark an exciting new phase in its development as one of its most promising mining ventures.