Pakistan, a nuclear power, has been struggling with an economic crisis for years. Despite financial aid from the International Monetary Fund and several allied countries, the situation remains unchanged. However, Islamabad holds a significant asset—the Reko Diq mine.
Located in Balochistan, this mine is known as one of the world’s largest copper and gold reserves. Experts believe it could help Pakistan overcome its economic challenges.
Recently, it has been revealed that Pakistan plans to sell a 15% stake in this crucial mine to Saudi Arabia. The central cabinet has approved this decision, and under an intergovernmental agreement, Pakistan will receive $540 million. The first phase will involve $330 million for a 10% stake, followed by $210 million for an additional 5%.
In exchange for the mine’s partnership, Saudi Arabia has proposed financial support for Pakistan’s infrastructure development, which Prime Minister Shahbaz Sharif hopes will strengthen the country’s economy.
Currently, the Pakistani government owns 50% of the Reko Diq mine, with the remaining 50% held by foreign companies. Gold and copper extraction began in 1995, and experts estimate reserves of approximately 40 million tons of gold and 6 billion tons of copper.
Experts predict that gold and copper extraction from this mine could continue for the next 40 years. Will the decision to sell stakes in the Reko Diq mine truly open new opportunities amidst Pakistan’s economic crisis? Only time will tell.
+ There are no comments
Add yours