Japan Eyes Investment in Pakistan’s Reko Diq Project

The Reko Diq project, located in Balochistan, is one of the world’s largest undeveloped copper and gold reserves. Pakistan, in collaboration with international partners, has been working on securing financing and agreements to unlock its potential. Japan’s possible involvement was discussed at the Economic Coordination Committee (ECC) meeting, where the Finance Division assured that the investment would not trigger capital flight, safeguarding foreign reserves.

According to the Petroleum Division, the project’s equity stands at $900 million, half funded by sponsors and the rest by agencies. State-owned enterprises, including OGDCL and PPL, are set to contribute $2.145 billion, with funding arranged through Pakistan Minerals Private Limited (PMPL). If needed, the government will provide foreign exchange support to meet financing requirements.

The initiative also places strong emphasis on healthcare, security, safety, and community welfare, making it more than just a mining project it is positioned as a catalyst for regional economic transformation. Japan’s interest, along with Saudi Arabia’s earlier move to acquire a 15% shareholding, reflects increasing foreign confidence in Pakistan’s resource sector.

Key Project Highlights

The ECC is reviewing final terms and government guarantees to facilitate agreements, with the Petroleum and Finance Divisions authorized to sign under the Rules of Business, 1973. If successful, Japan’s entry could further strengthen the international profile of Pakistan’s mining sector.