Pakistan secures a $700 million loan from the World Bank and IFC for the Reko Diq copper-gold project. This project is a joint venture between Barrick Gold, the Pakistan government, and the Balochistan government.
Pakistan: Pakistan, grappling with an economic crisis, has received significant relief. The International Finance Corporation (IFC) and the World Bank have approved a $700 million loan. This funding is specifically allocated to the Reko Diq copper-gold mining project located in Balochistan, Pakistan. This project is a joint venture between the Pakistan government, the Balochistan provincial government, and Barrick Gold, a leading Canadian mining company.
Reko Diq Project: Its Significance
The Reko Diq project is one of the world's largest undeveloped copper and gold mines. Situated in Chagai district, Balochistan, it is considered a cornerstone for Pakistan's economic revival. Barrick Gold holds a 50% stake, while the Pakistan government and the Balochistan government each hold 25%.
Project Profitability
According to Barrick Gold, the mine is projected to generate approximately $70 billion in free cash flow and $90 billion in operational cash flow over its lifespan. This project has the potential to be a game-changer for Pakistan, particularly amidst ongoing foreign debt and economic instability.
IMF and World Bank Funding Rationale
International financial institutions, notably the IMF and World Bank, typically fund projects with high potential for long-term returns. The Reko Diq investment is considered secure due to the involvement of Barrick Gold, a globally renowned mining company with a proven track record.
Furthermore, the Pakistan government has designated this project a national priority, strengthening policy, security, and legal frameworks to facilitate its development.
Previous IMF Loan
In May 2025, the IMF approved a $2.4 billion loan to Pakistan. One billion dollars was a tranche of a larger, seven-billion-dollar long-term program, while $1.4 billion was allocated for climate change initiatives.
India opposed this loan within the IMF, yet the IMF proceeded with the financial assistance. This is viewed as a diplomatic victory for Pakistan.
Potential Funding Sources
According to project director Tim Cribb, the IFC initially committed $300 million, later increased to $650 million. The project team is also negotiating loans with institutions such as the US Export-Import Bank, the Asian Development Bank, Export Development Canada, and the Japan Bank for International Cooperation.
Tim Cribb anticipates up to $2 billion in support from the World Bank. He stated that negotiations are in the final stages, with term sheet signings expected in early Q3.
Dr. Tauqir Hassan's Role and Pakistan's Strategy
Dr. Tauqir Hassan, an advisor to the Pakistan government, played a crucial role in securing this loan. Reports suggest his negotiations and lobbying with the World Bank and IFC were instrumental in obtaining the funding. This is considered a strategic achievement for Pakistan, potentially paving the way for future foreign investment.
Project Commencement
Barrick Gold aims to begin the first production phase of the Reko Diq mining project in 2028. This requires substantial investment in infrastructure, technology, and human resources. The government and private sector are working diligently towards this goal.
