IFC, World Bank Approve $700M Loan for Pakistan Reko Diq Mine

The International Finance Corporation (IFC) and the World Bank have approved a $700 million concessional loan to support the development of Pakistan's Reko Diq copper-gold mine in Balochistan, aimed at attracting $2.5 billion in private sector investment. This financing package, part of a total estimated project cost of $6.6 billion, includes $400 million in subordinated debt from IFC, which helps absorb financial risk and facilitates additional senior lending from institutions such as the U.S. Export-Import Bank, Asian Development Bank, Export Development Canada, and Japan Bank for International Cooperation. Barrick Gold, holding a 50% stake alongside Pakistan's federal and provincial governments, is leading the project, with production expected to begin in 2028 and potentially generate up to $74 billion in free cash flow over a projected 37-year mine life. The loan approval marks a significant diplomatic success for Pakistan, achieved despite opposition from India, and follows successful lobbying efforts by Pakistani officials. To address security concerns in the region, the federal government has allocated additional funds to support the Frontier Corps Balochistan in safeguarding the mining operations. The project is considered one of Pakistan's largest resource development endeavors, with expanded feasibility studies indicating increased throughput and the possibility of extending the mine's operational life.