Govt fully backing new energy, mineral ventures: Minister

November 26, 2025 (MLN): The federal government has reiterated its full support for new investments in Pakistan's minerals and energy sectors, terming recent progress on the Reko Diq project’s financing as a "highly encouraging" development for the national economy.

These assurances were given during a high-level meeting in Islamabad on Wednesday between officials from the Petroleum Division, the Oil & Gas Development Company Limited (OGDC), and the London-based international law firm, Milbank.

During the meeting, the delegation briefed the Minister for Petroleum, Ali Pervaiz Malik, on the current status of the multi-billion-dollar Reko Diq copper-gold project.

Munib Hussain, a partner at Milbank representing the project's financiers, provided positive updates regarding the project's financial close, a critical final step before full-scale construction can commence.

Minister Malik expressed satisfaction with the trajectory of the project, noting that the advancements in securing financing reflect growing international investor confidence in Pakistan’s mining potential.

He emphasized that the government is actively working to remove bottlenecks for foreign and local investors to ensure such large-scale projects yield maximum economic benefits.

The meeting was also attended by OGDCL Managing Director Ahmed Hayat Lak, whose company holds a significant stake in the project.

The discussion extended beyond Reko Diq to cover additional opportunities across Pakistan’s mining and oil and gas sectors, with all parties expressing a commitment to supporting strategic investments.

To note, Pakistan’s long-awaited Reko Diq copper-gold project could inject up to $74 billion into the economy over its 37-year life cycle.

The massive project has the potential to transform the country’s gold ecosystem and reduce decades-long dependence on imported bullion, the Competition Commission of Pakistan (CCP) said in its first comprehensive assessment of the gold market.

The study notes that Pakistan’s gold value chain is overwhelmingly informal, with over 90% of trade occurring outside documented channels and prices largely set through opaque association-driven mechanisms.

With domestic consumption estimated at 60 to 90 tonnes annually, Pakistan relies almost entirely on imports, amounting to just $17 million in FY24, leaving the market vulnerable to smuggling, tax leakages, and volatility.

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