ISLAMABAD: Japan has expressed its intent to invest in Pakistan’s multibillion-dollar Reko Diq copper and gold mining project, marking a potential shift from its traditionally auto-focused investment portfolio in the country.
According to the Petroleum Division, Japan is keen to join local and international partners in the project, which has already attracted investment interest from Saudi Arabia, including a proposed 15% shareholding. The Economic Coordination Committee (ECC) was briefed that the Finance Division supports Japan’s participation and assured there would be no undue capital flight in the form of dollar remittances.
The committee was informed that two types of guarantees are part of the financing framework: a sovereign completion guarantee by the government and an Asian Development Bank (ADB) guarantee for Balochistan Mineral Resource Limited (BMRL) equity.
The project financing involves $3.5 billion with strong emphasis on healthcare, safety, security, and community welfare. State-owned enterprises, including OGDCL and PPL, are expected to arrange their $2.145 billion funding commitment over seven years through Pakistan Minerals Private Limited (PMPL), with the government stepping in to provide foreign exchange support if needed.
Officials noted that Reko Diq has the potential to transform Balochistan’s economy while generating significant national revenues. The ECC has been asked to approve the final terms, financing arrangements, and definitive agreements, authorising the Petroleum and Finance secretaries to proceed with formal signings.
Story by Zafar Bhutta
