The International Monetary Fund (IMF) has requested a comprehensive briefing on the Reko Diq project, focusing on its financial structure, risks, and guarantees as Pakistan undergoes its ongoing bailout review. Officials confirmed that the IMF team, currently in Islamabad, is keen to understand the project’s fiscal implications and its role in the country’s broader economic strategy.
The IMF delegation will receive detailed information about both local and foreign financing arrangements, as well as the impact of micro-financing on the project. Sources said the review will also assess fiscal risks associated with sovereign guarantees provided to international lenders, ensuring that Pakistan’s commitments remain manageable within the bailout framework.
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Reko Diq, one of the world’s largest undeveloped copper-gold mines, is operated by the Reko Diq Mining Company (RDMC). Canada’s Barrick Gold holds a 50 percent stake, while the federal government and Balochistan government equally share the remaining ownership, reflecting a public-private partnership designed to maximize national benefit.
The project is approaching financial close, with around $3.5 billion in loans already committed by international lenders. Among them, the US Exim Bank has pledged the largest support, ranging between $700 million and $1.2 billion, signaling strong global investor interest. These funds will cover mine development, infrastructure, and associated facilities.
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The IMF’s demand for a project update comes during its second review of Pakistan’s $7 billion bailout programme. A successful review could unlock a $1 billion tranche, while Pakistan also expects $220 million under the IMF’s climate facility. The Fund’s evaluation of Reko Diq is seen as crucial to understanding Pakistan’s future debt sustainability.
Analysts believe the IMF’s interest reflects both the project’s scale and its strategic importance. As one of Pakistan’s most significant mining ventures, Reko Diq carries the potential to generate substantial revenue but also poses fiscal risks if guarantees are not carefully managed. The upcoming briefing is expected to shape both investor confidence and policy decisions.