The International Finance Corporation (IFC) and the World Bank have approved a $700 million concessional loan for Pakistan’s Reko Diq project, a major mining initiative in Balochistan. This loan will pave the way for a $2.5 billion private sector investment, further boosting one of the country’s most vital resource development projects.
Dr. Tauqeer Hussain Shah, advisor to the Prime Minister, played a central role in securing the loan through successful lobbying at the World Bank, highlighting Pakistan’s effective diplomatic efforts in overcoming regional geopolitical challenges.
The approval, granted during a board meeting in Washington, marks a diplomatic victory for Pakistan, particularly in light of opposition from India, which had actively lobbied against the funding.
In addition to the financial approval, the federal government has allocated Rs 3.74 billion for security measures at the Reko Diq gold and copper mine. The funds, which have been presented for approval in the Parliament, are intended to ensure the safety and security of the project amid growing concerns over law and order in Balochistan.
The Ministry of Interior had initially requested a supplementary grant of Rs 1.79 billion, which was later increased to Rs 3.74 billion after deliberations.
These funds will support the operational and security responsibilities of the Frontier Corps Balochistan (South), which is overseeing the security framework for the mine under the Security Services Framework Agreement (SSFA) with the Reko Diq Mining Company (RDMC).
