Islamabad, Aug 27: Along with a sizeable donation for the construction of infrastructure surrounding the mining area, Saudi Arabia has offered to purchase a fifteen percent share in Pakistan’s Reko Diq mining project.
Manara Minerals on behalf of Saudi Arabia’s Public Investment Fund (PIF) sought to purchase 15% of the project’s 25% federal government share. According to Express Tribune, Pakistan would establish a negotiation committee to examine the offer and provide a final price to the federal cabinet.
An additional grant for building the Mashkhel-Panjoor road is part of the Saudi plan. To complete this road project, the Saudi Fund for Development and the Ministry of Economic Affairs are in talks.
By pressuring Saudi Arabia to make up front payments to regional businesses that own project shares, Pakistan hopes to increase the bid price.
Additionally, the federal government is negotiating with Saudi Arabia for further financial support, which may include an investment of $5 billion in mining and agricultural by June 2025.
Under the larger financing proposal for the Reko Diq project, the US Export-Import Bank has indicated interest in lending up to $2 billion. The project is expected to cost between $6 and 6.5 billion in total.
