ISLAMABAD: Pakistan and Barrick Mining Corporation are reviewing enhanced security measures for the multi-billion-dollar Reko Diq Copper-Gold Project amid the prevailing security environment, a move that is expected to increase project-related security expenditures.
Confirming the development, OGDCL Chief Executive Officer Ahmad Hayat Lak said a Barrick team is currently in Pakistan to discuss security upgrades and assess existing arrangements under the project agreement.
Speaking to journalists, Lak explained that the Reko Diq agreement already contains provisions for security arrangements, and both sides are undertaking a formal review to determine whether additional measures and funding are required. He emphasized that Pakistan, as the host country, remains solely responsible for safeguarding the project site.
The review is also examining procurement plans and operational requirements. According to Lak, lenders have expressed confidence in the project’s existing security framework after conducting extensive due diligence during recent discussions in Canada. He added that several new financiers have also shown strong interest in participating in the venture.
Meanwhile, Petroleum Minister Syed Ali Pervaiz Malik said Barrick Executive Chairman John L. Thornton recently led a high-level delegation to Islamabad to discuss security concerns, procurement strategies, and the project’s future roadmap with government officials.
The minister noted that Barrick’s continued commitment to Reko Diq, despite global economic uncertainties and regional challenges, reflects confidence in Pakistan’s mining sector and the project’s long-term potential.
According to officials, the delegation also explored the procurement of advanced heavy-duty mining equipment through competitive bidding and discussed expanding the project’s financing and credit arrangements.
On the energy front, the petroleum minister indicated that domestic gas consumers could receive relief in the upcoming gas tariff review effective July 1, contrary to the increase sought by gas utilities.
“You will hear good news,” Malik remarked when asked about future gas pricing.
He revealed that the government has already decided to charge power producers Rs2,000 per million British thermal units (mmBtu) for gas supplies instead of the Rs3,500 per mmBtu applicable to imported LNG. A formal summary is expected to be submitted shortly for implementation.
The minister said the government would seek federal cabinet approval to align gas pricing with local production costs, aiming to protect consumers from higher energy expenses.
Malik further disclosed that domestic gas production had been increased by 400 million cubic feet per day to offset supply disruptions, while proposals had been developed to address the persistent circular debt challenge in the gas sector.
Petroleum Secretary Hamed Yaqoob Sheikh expressed optimism about securing support from the International Monetary Fund (IMF) for incentives aimed at upgrading Pakistan’s oil refineries.
He said the government had presented a strong case to the IMF, arguing that modernization of local refineries is essential for improving fuel quality, reducing import dependence, and strengthening the country’s energy security.
Story by Kalbe Ali
