Saudi likely to agree for $800mn investment in Reko Diq this week

Islamabad: There is a strong possibility that an agreement to invest 800 million dollars from Saudi Arabia in Reko Diq will be made this week, GNN reported.

According to the sources, out of 800 million dollars, 650 million dollars will be spent on investment and 150 million dollars will be spent on development in Chagai, while the investment from Saudi Arabia in Reko Diq will be received in a single tranche.

Sources said that the investment agreement of $800 million will be concluded this week. The investment agreement will be support for the approval of the loan from the International Monetary Fund (IMF) Executive Board, while after the investment and loan rollover of Saudi Arabia, China will also roll over the loan. 

The sources stated that Prime Minister Shehbaz Sharif will be briefed today by the officials of the Ministry of Energy to invest in Reko Diq, after which the agreement will be presented in the upcoming federal cabinet meeting for final approval.

According to the sources, the civil-military forum Special investment Facilitation Centre (SIFC) played a role in bringing investment from Saudi Arabia and removed the obstacles in the way of investment.

According to the sources, discussions with Saudi Arabia were underway for the past eight months to invest in Reko Diq. Saudi Arabia will also invest in Exploration Lease Block 6 and Block 8 of Reko Diq, while the total investment in Reko Diq from Saudi Arabia is being estimated up to 10 billion dollars.

Sources also stated that Pakistan wants to regain the oil facility from Saudi Arabia on delayed payments. The resumption of the loan oil facility will bring $2 billion to Pakistan from Saudi Arabia. The external financing gap can also be covered by getting $2 billion from Saudi Arabia this financial year.

It is pertinent to note that the oil facility between Saudi Arabia and Pakistan on delayed payments continued till December 2023.