audi Arabia has made a significant economic commitment to Pakistan by investing $540 million in the Reko Diq copper and gold mining project. This investment marks a major boost for Balochistan’s economy, providing much-needed capital and expertise to develop one of the world’s largest undeveloped mineral reserves. Additionally, Aramco’s plans to establish an oil refinery in Balochistan, with an investment of approximately $10 billion, that will further enhance Pakistan’s energy security and economic landscape.
Saudi Arabia’s investment in Reko Diq is structured in two phases, with an initial $330 million for a 10 percent share, followed by an additional $210 million for another 5 percent. This move strengthens Saudi-Pakistan economic ties and demonstrates Saudi Arabia’s strategic interest in global mining through its mining fund, the Manara Minerals.
Reko Diq, located in Balochistan, is estimated to hold approximately 5.9 billion tonnes of copper ore, containing 41.5 million ounces of gold. The ownership is divided between Barrick Gold (50 percent), the Government of Pakistani (25 percent) and the Balochistan government (25 percent).
The project’s development cost is projected at $9 billion. The first phase alone will require $4.5 billion. Mining operations are expected to begin in 2028, with an initial annual output of 200,000 tonnes of copper by 2029. The second phase, projected to double the production capacity, will require an additional $3.5 billion investment.
Over its 37-year lifespan, Reko Diq is anticipated to generate $74 billion in free cash flow, significantly boosting Pakistan’s economy. Beyond financial benefits, the project will create thousands of direct and indirect jobs, enhance infrastructure and increase Balochistan’s revenue, which will fund local development and welfare initiatives.
Saudi Arabia’s involvement in Reko Diq is also expected to promote skills development and technology transfer in the mining sector, empowering the local workforce. The project’s success will encourage further foreign investments in Balochistan’s natural resources, fostering long-term economic stability. Furthermore, it will support environmental and corporate social responsibility initiatives, improving living standards in the surrounding communities.
Aramco, the world’s leading energy company, is set to make a landmark investment in Pakistan’s energy sector with a $10 billion oil refinery project. This initiative, aimed at bolstering Pakistan’s refining capacity and energy security, represents a significant step in strengthening Saudi-Pakistan economic ties and fostering industrial development in Balochistan.
Aramco’s planned refinery will have a processing capacity of up to 300,000 barrels of crude oil per day. Originally the project was proposed for Gwadar. However, Hub, closer to Karachi has also emerged as a potential site due to its established infrastructure and proximity to major industries. The project aligns with Pakistan’s long-term strategy to reduce its reliance on imported refined petroleum products and improve domestic energy production.
Pakistan must continue to facilitate investments through transparent policies, community engagement and workforce development programmes. By focusing on sustainable growth, these projects can drive long-term prosperity and economic independence for Balochistan.
The refinery aims to reduce Pakistan’s dependence on imported refined petroleum products, bolstering the country’s energy security and industrial development. It is expected to generate thousands of jobs, stimulate economic growth and enhance local infrastructure, including storage facilities and transportation networks.
By increasing Pakistan’s domestic refining capacity, the refinery will lower the country’s energy import bill, stabilise fuel prices and strengthen Saudi-Pakistan economic relations. The project’s scale and strategic importance will also encourage further investments in Balochistan’s energy and industrial sectors.
The construction and operation of the refinery will generate thousands of direct and indirect jobs, providing employment opportunities for skilled and unskilled workers in Balochistan and beyond.
Saudi investments in Reko Diq and the Balochistan oil refinery represent a major leap forward in Pakistan’s economic and industrial growth. These projects promise opportunities for local communities, fostering sustainable development, employment and technology transfer. Reko Diq mines and the refinery will transform Balochistan into an economic hub, positioning the province as a key player in global mining and energy markets.
The revenue will contribute significantly to the province’s development, improving healthcare, education and infrastructure. These projects also highlight Pakistan as an attractive destination for foreign investment. By ensuring transparency and equitable resource distribution, Pakistan can strengthen its global economic partnerships and encourage further international collaboration in its natural resource sector.
While foreign investments often attract scrutiny, it is essential to counter misinformation with facts. Saudi Arabia’s commitment to Reko Diq and Balochistan’s energy sector is designed to benefit Pakistan’s economy and local communities. Allegations of resource exploitation overlook the structured revenue-sharing model that ensures a fair distribution of wealth.
Pakistan must continue to facilitate such investments through transparent policies, community engagement and workforce development programs. Through sustainable growth, these projects can drive long-term prosperity and economic independence for Balochistan.
Saudi Arabia’s investments in Reko Diq and Balochistan’s energy sector mark a new era of economic cooperation and industrial advancement. These projects will not only create jobs and strengthen Pakistan’s economy but also enhance its energy security and position it as a strategic player in the global market.
Through careful planning, efficient implementation and strong international partnerships, Pakistan can ensure that these investments catalyse lasting prosperity. By embracing these opportunities, Balochistan can emerge as a model for economic growth, stability and development in the region.
The writer is a Lahore-based reporter at The News International.
