Saudi Arabia Showing Interest in Acquiring Pakistan’s Mines

On Nov 14, an official from Pakistan revealed that Saudi Arabia has expressed interest in obtaining government shares in the Reko Diq gold and copper mine. The official also stated that an international adviser is in the final stages of evaluating the mine. The mine is jointly owned by Barrick Gold Corp, the governments of Pakistan and the province of Balochistan, with each holding a 50 per cent stake. Barrick considers the mine to be one of the largest underdeveloped copper-gold areas in the world.

The government anticipates the valuation will be finished prior to December. 25-year-old Jahanzeb Khan, who serves as the prime minister's adviser for the Special Investment Facilitation Council (SIFC), shared with reporters. Pakistan had stated earlier that Barrick would be investing $10 billion in the project. In August, Barrick announced its willingness to consider Saudi Arabia as a potential partner in the mine.

Khan stated that Islamabad will engage in discussions with Riyadh once the assessment is finished and assess its anticipated outcomes. The request for comment from the Saudi Arabian government did not receive an immediate response.

However, the agreement is contingent on the country's capability to attract foreign direct investment in order to bolster its dangerously low foreign exchange reserves. Pakistan is looking to its long-standing allies in the Middle East, such as Saudi Arabia, to take the lead in making investments.

Khan expressed Pakistan's eagerness to have Saudi Arabia on board while emphasizing that Islamabad was not in a hurry and would not engage in "distress sales" of its assets. He reassured that Pakistan would prioritize its national interests and protect them.