Islamabad: An $800 million investment agreement for the Reko Diq project is expected this week from Saudi Arabia.
According to sources, $650 million of this amount will be allocated for investment, while $150 million will be used for development projects in Chagai. This investment will be received from Saudi Arabia in a single installment.
The sources also indicated that this agreement will facilitate the approval of the IMF Executive Board for a loan, and after Saudi Arabia’s investment, China is expected to roll over its loan.
Prime Minister Shahbaz Sharif will be briefed today by Ministry of Energy officials on the investment in the Reko Diq project. The agreement will be presented at the upcoming federal cabinet meeting.
After eight months of negotiations with Saudi Arabia, the Civil-Military Forum (SIFC) has removed the obstacles to this agreement.
Under the agreement, Saudi Arabia will also invest in Reko Diq’s Exploration Lease Block 6 and Block 8, with a total investment estimated at $10 billion.
Pakistan is also seeking to reinstate its oil facility from Saudi Arabia on deferred payments, which will bring $2 billion from Saudi Arabia during the current fiscal year and help bridge the external financing gap.
It is worth noting that the deferred payment oil facility between Saudi Arabia and Pakistan was in effect until December 2023.
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