No formal deal with KSA on Reko Diq yet: Musadik Malik

December 31, 2024 (MLN): The federal cabinet has not approved any specific agreements regarding the Reko Diq mining project with Saudi Arabia, clarified Petroleum Minister Musadik Malik on Tuesday.

Amid rising media reports, Malik emphasized that while discussions with Saudi Arabia are ongoing and progressing, no formal deal has been finalized.

He also refuted rumours suggesting that Saudi Arabia is purchasing shares in the project, calling them baseless.

Minister Malik clarified that no details have been finalized yet, and no formal agreements have been approved by the federal cabinet as of now.

Earlier, it was reported that Pakistan's federal cabinet had approved the sale of a 15% stake in the Reko Diq mining project to Saudi Arabia, under an intergovernmental transaction agreement.

The deal, valued at $540 million, will see the transfer of shares in two instalments. Saudi Arabia will pay $330 million for 10% shares in the first phase and an additional $210 million for 5% shares in the second phase.

The Reko Diq project is regarded as one of the world’s largest undeveloped copper and gold deposits, presenting significant economic opportunities for Pakistan.

Musadik Malik mentioned that the government is actively working on adjusting gas prices in line with the commitments made to the International Monetary Fund (IMF).

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