Saudi Arabia has made a significant move to invest in Pakistan’s Reko Diq mining project by offering to purchase a 15% stake.
The offer comes from Saudi Arabia’s Public Investment Fund (PIF) through its subsidiary, Manara Minerals, aiming to acquire a portion of the federal government’s 25% share in the project reported by the Express Tribune.
In addition to the stake acquisition, Saudi Arabia has proposed a substantial grant for infrastructure development, specifically for the construction of the Mashkhel-Panjoor road. The Ministry of Economic Affairs in Pakistan is currently in discussions with the Saudi Fund for Development to finalize this road project.
To maximize the offer price, Pakistan is encouraging Saudi Arabia to make an upfront payment to local companies holding shares in the project. A negotiation committee will be formed to review the Saudi offer and recommend a final price to the federal cabinet.
Furthermore, the federal government is in talks with Saudi Arabia for additional financial support, which includes a potential $5 billion investment in mining and agriculture by June 2025.
As part of the broader financing plan for the Reko Diq project, the US Export-Import Bank has shown interest in providing up to $2 billion in loans. The total cost of the project is estimated to be between $6 billion and $6.5 billion.
