Reko Diq deal nears finish line

November 21, 2025 (MLN): The long-pending financial close of the Reko Diq copper-and-gold project is now “around the corner,” with an IFC-led consortium finalizing approximately $3.5 billion in debt financing and the US Export–Import Bank expected to rejoin the process soon,  Finance Minister Muhammad Aurangzeb told Arab News in an interview on Wednesday.

According to the minister, IFC’s lead role has provided strong comfort to global lenders, with most elements of the financing structure already in place. Final approvals are expected within weeks.

Aurangzeb met IFC’s top leadership and consortium partners in Washington recently, reinforcing confidence that the project is close to closure.

He underscored that Reko Diq could transform Pakistan’s export landscape, noting that the mine’s first year of operations alone is projected to generate $2.8 billion in export potential, nearly 10% of Pakistan’s current annual exports.

Aurangzeb reaffirmed that Saudi Arabia’s previously signaled $10 billion investment appetite for Pakistan remains unchanged.

He said Islamabad is now preparing “investable, bankable” private-sector projects as both sides shift from crisis support toward long-term, commercially driven B2B engagement.

The evolving Saudi–Pakistan Economic Cooperation Framework, announced last month, aims to deepen collaboration in minerals, mining, IT, agriculture, food, tourism, and manufacturing.

Pakistan’s improving macroeconomic indicators, easing inflation, a stable rupee, strengthened reserves, and upgraded outlooks from Fitch and Moody’s have boosted investor confidence.

Aurangzeb said the government wants the next phase of engagement to be private-sector-led:
“It’s not aid; it has to be led by trade and investment. That is what brings sustainability.”

Manufacturing is emerging as a growing area of cooperation, particularly as Saudi Arabia prepares for the 2034 FIFA World Cup.

Forward Sports Sialkot, the maker of Adidas’s official World Cup match balls and now the brand’s largest football supplier, met Saudi officials during the FII summit to explore joint manufacturing and distribution models between the two countries.

Alongside Reko Diq, Pakistan is holding discussions with the United States and other partners on critical minerals, a sector of rising strategic significance.

While an American official told Arab News that a $1 billion-plus deal with US investors has been finalized, Aurangzeb clarified that negotiations are ongoing but interest remains strong.

“There’s tremendous interest and tremendous potential at our end,” he said.

The finance minister said Pakistan is now better positioned to convert geopolitical goodwill from Saudi Arabia, the US, China, and GCC partners into long-term investment flows.

With an ongoing $7 billion IMF program and improving economic indicators, he expressed confidence that Pakistan can now attract meaningful, private-sector-led foreign direct investment, Arab News reported.

“All of this is about translating goodwill into trade and investment,” he said. “And this is going to be private sector–led, across the board.”