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The Pakistan Stock Exchange is witnessing bullish trends; however, critical long-term investments are experiencing less positivity. The multi-billion dollar copper and gold project at Reko Diq in Balochistan’s Chagai district is apparently facing several delays in materializing, as reported by national media on Monday.
According to a report by Dawn News, the Canadian giant Barrick Gold is actively involved, holding a 50 percent stake in the venture. The recent changes in the ownership structure of the Reko Diq mining project have attracted the interest of key bilateral partner Saudi Arabia and principal investor Barrick Gold, both of which are contributing to the current delays.
On the other hand, Saudi Arabia has consistently expressed interest in investing in Pakistan’s oil and gas sector, as well as in infrastructure, agriculture, and industry. During a visit in October this year, Sheikh Khalid Bin Abdul Aziz Al Falih, Saudi Minister for Investment, informed about their plans to invest $1 billion in the Reko Diq project.
According to the report, he also emphasized the strong relationship of trust and partnership between his country and Barrick Gold. The Canadian mining giant sought Saudi Arabia’s participation in a major project in Pakistan’s restive region to mitigate the risk of policy shifts.
Citing a legal source, Dawn News reported that “Barrick believes Riyadh’s involvement would serve as a safeguard against abrupt policy changes in Pakistan,” remarked the legal source familiar with the earlier Reko Diq case, speaking off the record.
On the other hand, Pakistan has reportedly resolved disagreements over stake allocation by agreeing to transfer 15 percent of its 25 percent share to Saudi Arabia, a key bilateral partner. Sources in Islamabad familiar with the negotiations on the reallocation of the federal government’s stakes informed this scribe that Saudi Arabia sought at least a 20 percent share, while the federal government was firm on not relinquishing more than 10 percent of its holding in the venture.
