The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $400 million subordinated loan to support the development of Pakistan’s Reko Diq copper-gold mine, according to an official disclosure issued Friday. This latest commitment brings IFC’s total financing for the project to $700 million, following an earlier $300 million pledge made in April.
The loan is part of a broader $6.6 billion financing package intended to fund the mine through a combination of debt and equity, sourced from a consortium of international lenders and development finance institutions. According to IFC, the remaining portion of the debt will be covered by other parallel financiers, several of whom are already lined up to participate in the deal.
Reko Diq, located in the mineral-rich Chagai district of Balochistan, is widely regarded as one of the world’s largest untapped copper and gold deposits. The site is currently being developed by Barrick Gold Corporation, which holds a 50% stake in the project. The remaining 50% ownership is shared between the Government of Pakistan and the Government of Balochistan, under a joint venture framework that was restructured in 2022 following a long-running legal dispute.
The newly announced $400 million facility from IFC is in the form of subordinated debt, a type of loan that ranks below senior obligations in terms of repayment priority. While carrying higher risk, subordinated debt plays a critical role in large infrastructure and natural resource projects by improving the overall risk profile and unlocking access to more traditional senior financing. Such instruments help attract additional lenders by absorbing part of the financial risk.
Other key international lenders expected to participate in the Reko Diq financing package include the U.S. Export-Import Bank (EXIM), the Asian Development Bank (ADB), Export Development Canada (EDC), and Japan Bank for International Cooperation (JBIC). According to project director Tim Cribb, discussions with these institutions are progressing, and term sheets are expected to be finalized by early in the third quarter of 2025.
The mine’s development is seen as a game-changing opportunity for Pakistan’s economy, particularly for the underdeveloped province of Balochistan. The project is expected to generate substantial employment, boost local infrastructure, and increase export revenues once operational. Barrick Gold has projected that the Reko Diq mine will produce significant economic returns over its estimated 37-year operational life, with potential free cash flows of up to $74 billion.
Production from Reko Diq is anticipated to begin in 2028, with construction activities already ramping up under the supervision of Barrick’s international technical teams and local partners. Once operational, the mine is expected to become a major contributor to Pakistan’s mineral exports and industrial development, positioning the country as a key player in the global copper and gold markets.
IFC Managing Director Makhtar Diop has previously stated that the institution is “doubling down” on its investments in Pakistan, focusing especially on sectors like infrastructure, natural resources, and energy, which are seen as crucial for driving long-term economic stability and growth. The Reko Diq investment marks one of IFC’s largest resource-sector commitments in the country to date.
As the financial close for the project draws nearer, the growing interest from global lenders underscores confidence in Reko Diq’s viability and Pakistan’s renewed focus on large-scale economic development. The project also aligns with broader international interest in securing reliable supplies of copper, a critical mineral used extensively in clean energy technologies, electric vehicles, and global infrastructure.
With progress accelerating and funding commitments expanding, Reko Diq is fast emerging as a flagship project for foreign investment in Pakistan—poised to transform the mining landscape and deliver long-term economic dividends for decades to come.
