News
May 25 , 2024
Center to Sell 15pc Stake in Reko Diq Project to Saudi Arabia
Islamabad: After the refusal of Barrick Gold Corporation to sell out its stakes in the multibillion-dollar Reko Diq project, Pakistan and Saudi Arabia have agreed in principle to strike a deal whereby Islamabad is ready to sell its 15 percent shares to Saudi investor, The News has learnt.
With this development, Pakistan’s overall shares in the Reko-Diq project are expected to be reduced from the existing 50pc to 35pc. Out of 35pc, the Balochistan government’s share would remain at the existing level of 25pc, while the federal government’s State-Owned Enterprises (SOEs) stakes would be reduced from 25pc to 10pc. “With this development, Pakistan will become a minority shareholder in this project,” said official sources.
A top government official said that Pakistan possessed experience in running companies as joint ventures with international players. In the case of PTCL and the banking sector, it is a conscious decision of the government to become a minority shareholder in Reko Diq project and it would not pose a problem.
Another official said there are certain clauses in the existing arrangement of Reko Diq whereby Barrick Gold would be bound not to take any major decision unilaterally, especially relating to investments. “Pakistan will be able to invoke such clauses in case of any urgent needs,” said the official.
Amid dwindling investment-to-GDP ratio that had touched the lowest ebb of the last 50 years since 1972-3 during the outgoing fiscal year 2023-24, a breakthrough is expected for striking a deal in Reko Diq with the involvement of Saudi Arabia which would play a critical role for improving the investment climate.
Two top functionaries confirmed to The News on Thursday that the much-awaited development had achieved a breakthrough and a formal announcement was expected anytime within the next few weeks. “Saudi Arabia will be involved in the Reko Diq project and they intend to increase their stakes in more blocks of the Reko Diq in the future,” official sources told The News on Thursday. With the help of the Special Investment Facilitation Council (SIFC), a consultant was hired, who submitted its valuation report that paved the way for selling out stakes in the Reko Diq project. – The News
Courtesy The News
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