In a significant development, Saudi Arabia is set to purchase 15% of the shares of the Reko Diq project for $540 million. The federal cabinet has approved the deal, which will be completed under the Inter-Governmental Transaction Act.
Payment Structure and Timeline
Saudi Arabia will pay Pakistan in two installments. The first installment of $330 million will be paid upon the transfer of 10% shares. The second installment of $210 million will be paid after the remaining 5% shares are transferred.
Saudi Investment in Balochistan’s Mineral Development
In addition to the Reko Diq deal, Saudi Arabia has pledged $150 million to support the development of mineral resources in Balochistan. This investment highlights Saudi Arabia’s growing role in Pakistan’s mining sector.
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Future Prospects in Chagai
Saudi Arabia has also expressed interest in investing in mineral exploration in the Chagai region, signaling a long-term commitment to Pakistan’s mining industry. This investment, alongside the Reko Diq deal, is expected to boost local economies and foster stronger bilateral relations between Pakistan and Saudi Arabia.
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