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Pakistan and Saudi Arabia Move Closer to Finalizing Reko Diq Deal

Islamabad:After overcoming a major obstacle in the path of selling the government’s shares in the Reko Diq project to Saudi Arabia, Pakistan and Saudi Arabia are moving towards finalizing the deal in the coming months.

In another related development, the revised valuation of the Reko Diq project has been completed, and both parties are now in the final stages of detailing the terms of the deal.

Saudi Arabia will initially acquire 10% of the shares in the Reko Diq project, with the possibility of increasing its stake in the future.

A significant hurdle has been cleared as Saudi Arabia had initially sought to hold a foreign bank account outside Pakistan for purchasing machinery, which would require the use of foreign exchange. However, both sides have now agreed that foreign exchange will be brought into Pakistan, and a comprehensive agreement has been reached in this regard.

An official familiar with the ongoing negotiations told *The News* that while it is difficult to estimate the exact timing of the deal’s finalization, 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 revision has led to an improvement in the share price. The revised valuation has been shared with the other party, and the negotiations are nearing completion.

The official also indicated that the value of the shares is expected to increase further as production at the project begins in the coming years. Pakistan has acknowledged that in case of any dispute, it may resort to arbitration through the Permanent Court of Arbitration (PCA) or the International Centre for Settlement of Investment Disputes (ICSID).

Saudi Arabia is negotiating to finalize this commercial agreement, with the collaboration of Manara Minerals Investment Company, Saudi Arabian Mining Company (Ma’aden), and the Public Investment Fund (PIF). This initiative aims to promote global mineral resource investment and the development of stable supply chains.

Reko Diq Mining Company (RMDC) has been entrusted with the responsibility of recruiting and paying levies for the province of Balochistan.

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