Islamabad:
Pakistan has concluded a $ 3.5 billion funding agreement with six major international financial institutions on the development of the historic REKO DIQ mining in Balochistan – a milestone for one of the country’s most significant mineral companies.
According to official sources, the financing package includes obligations from leading global lenders such as US Exim Bank, Asian Development Bank, International Financial Institutions, International Development Association and European Bank.
The agreement was signed by the project sponsors, the federal government and Barrick Gold Corporation, while the final approval of lenders remains pending. When the payment of the payment is expected to begin within 45 to 90 days, subject to the fulfillment of the agreed conditions.
According to the terms of the agreement, lenders receive a repayment period of four to five years, with the repayment of loans spread over a 12-year schedule. The financing will have a single -digit interest rate that offers Pakistan a relatively favorable borrowing framework.
Officials said that if all prerequisites are completed on time, the first tranche of funds could be released within two months.
The most important stakeholders in the project include Barrick Gold Corporation, Balochistan Government, Oil and Gas Development Company Limited and Pakistan Petroleum Limited.
According to the agreed equity structure, Barrick Gold will retain a 55 percent share, while OGDCL and PPL will jointly have 27.7 percent. Balochistan will maintain an equity share of 16.6 percent.
With an estimated overall cost of around $ 7.7 billion, the Reko DIQ project is expected to start production by the end of 2028.
According to official estimates, the project could generate approx. $ 53 billion in total revenue over its lifetime. Balochistan is expected to receive $ 11 billion in tax revenue, $ 6 billion as its provincial share and $ 9 billion through equity held by Balochistan Mineral Resources Limited.
The federal government is expected to earn around $ 11 billion in tax revenue.
