Pakistan and Saudi Arabia Move Closer to Finalizing Reko Diq Deal After Major Hurdle Resolved

Quetta:Pakistan and Saudi Arabia are set to finalize their agreement on the sale of government shares in the Reko Diq mining project in the coming months, following the resolution of a major obstacle. In a related development, the revised estimated value of the Reko Diq project has been completed, and both parties are now in the final stages of refining the details of the deal.

Under the first phase of the agreement, Saudi Arabia will acquire a 10% stake in the Reko Diq project, with the option to increase its shares in the future. One of the significant hurdles to completing the deal was Saudi Arabia’s request to maintain a foreign bank account for purchasing machinery with foreign exchange, which was previously a point of contention.

A senior official familiar with the ongoing negotiations revealed to *The News* that both parties have now agreed that foreign exchange will be brought into Pakistan, and a comprehensive agreement has been reached in this regard. When asked about the timeline for finalizing the deal, the official stated that while an exact date could not be predicted, the agreement is in its final stages and could be concluded soon.

Regarding the revised valuation of the Reko Diq shares, the official mentioned that the project is still in its preparation phase, but the revised process has led to an improved value for the shares. The revised pricing results have been shared with the counterpart, and discussions are now in their concluding phase. The official further stated that as production begins, the value of the shares is expected to increase over the coming years.

Pakistan has also acknowledged that in the event of any dispute, the Permanent Court of Arbitration (PCA) or the International Centre for Settlement of Investment Disputes (ICSID) can be approached for resolution. Saudi Arabia is actively negotiating this commercial agreement, which is being pursued by Manara Minerals Investment Company, a new venture between Saudi Arabian Mining Company (Maaden) and the Public Investment Fund (PIF), aimed at promoting global mineral resource investment and the development of stable supply chains.

Furthermore, Reko Diq Mining Company (RMDC) has been entrusted with the responsibility of recruitment and payment procedures for Levies in the Balochistan region, as part of the project’s operational requirements.