The International Finance Corporation (IFC), a member of the World Bank Group, has raised its total investment in Pakistan’s Reko Diq copper and gold mining project to $700 million, marking a significant step toward the development of one of the world's largest untapped mineral deposits.
This major financial boost includes a newly announced $400 million subordinated loan, in addition to the $300 million equity investment previously committed by the IFC. The infusion of funds signals strong international confidence in the potential of Reko Diq and highlights the growing global interest in securing stable sources of copper, a critical mineral in the global energy transition.
Reko Diq: A Strategic Mineral Asset
Located in Pakistan’s southwestern province of Balochistan, Reko Diq holds one of the world’s largest undeveloped deposits of copper and gold. The site is estimated to have over 50 million ounces of gold and 40 million tons of copper, making it a project of immense strategic value not just for Pakistan, but for the broader international mining and energy sectors.
The Reko Diq project is being developed by Barrick Gold Corporation, which holds a 50% stake, with the remaining share divided between the Government of Pakistan and the Balochistan provincial government. The total estimated cost for the project’s first development phase is around $6.6 billion. Once fully operational, the project is expected to produce 200,000 tons of copper and 250,000 ounces of gold per year for at least 37 years.
IFC’s Role and Strategic Importance
The IFC’s latest $400 million loan comes in the form of a subordinated debt facility, meaning it will be repaid after senior loans are serviced. This structure is particularly important because it helps lower the risk for other commercial lenders, effectively “crowding in” additional international financing. By taking on a higher-risk tranche of debt, IFC is playing a catalytic role in ensuring that this large-scale, capital-intensive project proceeds as planned.
In a broader context, the investment also aligns with IFC's goals of supporting sustainable development in emerging markets. Reko Diq is expected to generate substantial economic benefits for Pakistan through increased exports, tax revenues, infrastructure development, and job creation, particularly in the underdeveloped Balochistan region.
A Broader Financing Consortium in the Works
Beyond the IFC, several other major international financial institutions are in discussions to participate in the financing of Reko Diq. These include the U.S. Export-Import Bank (EXIM), the Asian Development Bank (ADB), the Japan Bank for International Cooperation (JBIC), and Export Development Canada (EDC). According to reports, term sheets from these institutions are expected to be finalized by the third quarter of 2025.
If finalized, this multi-lender framework would mark one of the largest project finance deals in Pakistan’s history. It would also signal a renewed level of trust and cooperation between Pakistan and the international investment community—particularly notable given the country’s history of political instability and financial challenges.
Economic and Social Impact
The Reko Diq project is poised to become a game-changer for Pakistan’s economy. Once operational, it could generate over $70 billion in free cash flow over its lifetime, based on current market projections. The mine will also contribute significantly to Pakistan’s foreign exchange reserves and provide an alternative to the country’s heavy reliance on imported energy resources.
Moreover, the project is expected to create thousands of direct and indirect jobs. According to Barrick Gold, the company is committed to employing local labor and procuring goods and services from local businesses where feasible. This could provide much-needed economic uplift for the Balochistan province, which has long struggled with poverty, limited infrastructure, and underinvestment.
Challenges and Outlook
Despite the positive outlook, the project is not without challenges. Security remains a concern in Balochistan, where occasional unrest and insurgent activity could pose risks to operations. Additionally, the project must carefully manage its environmental footprint, as large-scale mining projects are often scrutinized for their impact on local ecosystems and communities.
Still, the involvement of reputable international institutions and firms provides a layer of oversight and adherence to global best practices in environmental and social governance (ESG). The project’s success will depend heavily on transparent operations, inclusive development, and effective coordination between federal and provincial authorities.
Conclusion
The IFC’s increased investment in the Reko Diq project marks a major milestone not only for Pakistan’s mining sector but also for its broader economic development. With one of the world’s richest untapped mineral deposits under development and growing international financial backing, Reko Diq could become a cornerstone of Pakistan’s future economic landscape.
If managed properly, this project has the potential to lift the economic prospects of an entire region and place Pakistan on the map as a major player in the global copper and gold markets.
Reference: ریکوڈک منصوبہ : آئی ایف سی کی کل سرمایہ کاری 70 کروڑ ڈالر تک پہنچ گئی
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