Balochistan’s treasury at risk as Trump and Shahbaz strike $1.3 billion deal

Islamabad/Washington (The Uttam Hindu): The United States has announced an investment of approximately $1.3 billion in a gold and copper mining project in Balochistan, Pakistan. The Reko Diq project, located near the Pakistan-Iran border, is valued at approximately $7 billion and is expected to begin production by the end of 2028. The project is being developed in partnership with Canadian mining company Barrick Mining Corp. and Pakistani authorities. The US investment will be made through the United States Export-Import Bank (Exim Bank).

Balochistan's treasury threatened! Trump and Shahbaz collude, US to invest $1.3 billion: Barrick has a 50 percent stake in the project, while of the remaining 50 percent, 25 percent is held by three federal government companies and 25 percent by the Balochistan government. Security concerns also remain. There have been frequent attacks by separatist and jihadist organizations in Balochistan, due to which the security of the mine is considered a major challenge. Apart from this, there will also be a need to upgrade the railway infrastructure to transport the copper concentrate to Karachi and then for processing abroad.

According to a Reuters report, the International Finance Corporation and other lenders, including the Asian Development Bank, are preparing a financing package worth more than $2.6 billion. The Reko Diq project is considered strategically important for Pakistan. The Islamabad government views the project as crucial to strengthening its mineral strategy, while Barrick Mining is pursuing it as one of its largest long-term projects.

Prime Minister Shahbaz Sharif's government welcomed the investment, calling it a sign of confidence in Pakistan's mining sector and economic reforms. The government expects the project to generate billions of dollars in revenue over its lifetime and play a key role in the country's economic development.