World Bank and IFC Approve $700 Million Loan for Pakistan’s Reko Diq Project
The World Bank and the International Finance Corporation (IFC) have approved a concessional loan of $700 million for the Reko Diq project, a major mining and resource development initiative in Pakistan, reports The Hindu citing The Express Tribune newspaper, as per a report from The Hindu. The project, located in the mineral-rich Balochistan province, is a significant victory for Pakistan, and is expected to attract $2.5 billion in private sector investment.
According to The Hindu, the Reko Diq project is a joint venture between Barrick Gold and the federal and Balochistan governments. The financing for phase one of the project, which is expected to start production in 2028, is being discussed with multiple lenders. The project has undergone significant changes, with a recent feasibility study upgrading the project’s scope. Phase one throughput has been increased to 45 metric tonnes per annum from 40 metric tonnes, and phase two throughput is expected to rise to 90 metric tonnes per annum from 80 metric tonnes.
As quoted by The Hindu, "The cost of phase one has also been revised upwards to $5.6 billion from $4 billion." The mine life has been revised from 42 years to 37 years, although the company believes that unaccounted-for minerals could extend the life to 80 years.
The World Bank’s approval of the loan is part of its plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade, as reported by The Hindu. The project is expected to play a pivotal role in Pakistan’s resource development sector, and the government’s efforts to secure financing for the project have been successful.
The Reko Diq project has been in the works for several years, with the Pakistani government facing challenges in securing financing for the project. However, with the World Bank and IFC’s approval of the loan, the project is now expected to move forward. As reported by The Hindu, the project’s success is seen as crucial for Pakistan’s economic development.
In a statement, The Hindu reported that "The World Bank plans to invest $2 billion annually in Pakistan’s infrastructure over the next decade." This investment is expected to have a significant impact on Pakistan’s economy, and the Reko Diq project is seen as a key part of this effort.
The approval of the loan is a significant development for the Reko Diq project, and is expected to have a positive impact on Pakistan’s economy. As reported by The Hindu, the project will create jobs and stimulate economic growth in the region. With the World Bank and IFC’s support, the project is now expected to move forward, and will play a key role in Pakistan’s resource development sector.
The development of the Reko Diq project has significant implications for Pakistan’s economy, and the country’s efforts to develop its mineral resources. As reported by The Hindu, the project will contribute to the country’s economic growth, and will help to stimulate development in the region.
