Pakistani Cabinet Sells approval 15% Reko Diq Stake to Saudi Arabia for $540 Million

The federal cabinet has finalized the sale of a 15% stake in the Reko Diq gold and copper project to Saudi Arabia for $540 million, marking a key milestone in Pakistan-Saudi economic collaboration.

The shares will be transferred directly under the Intergovernmental Transactions Act. The deal outlines a two-phase payment plan: $330 million for an initial 10% stake and $210 million for the remaining 5%.

In a related development, the Saudi Fund for Development has pledged an additional $150 million to support mineral exploration and development in Baluchistan, boosting the region’s mining sector.

Saudi Arabia has also expressed readiness to expand its investment portfolio in Pakistan, particularly in the mineral-rich Chagai district, sources revealed. The federal and Baluchistan governments currently hold a combined 50% stake in the Reko Diq project, which is seen as a cornerstone for Pakistan’s mineral industry.

This transaction underscores Saudi Arabia’s increasing role in Pakistan’s resource development and aligns with Riyadh’s larger $1 billion investment commitment in the Reko Diq project. Observers view this agreement as a significant step toward fostering deeper economic ties between the two nations.