In continuation of its investment and economic cooperation with Pakistan, the Kingdom of Saudi Arabia has decided to buy stakes in Pakistani copper and gold mining projects in the Province of Balochistan.
The Kingdom hinted to purchase 20% share of the $9bn complex of the RekoDiq mines.
The RekoDiq project is regarded as one of the world’s largest undeveloped copper and gold deposits, presenting significant eco-nomic opportunities for Pakistan as well as the investors.
The Saudi Manara Minerals company will be the leading firm to invest in the RekoDiq, currently being developed by Barrick Gold.
Stated by the Barrick’s chief executive, Mark Bristow, “This is a massive project; it will change the Pakistan economy”.
As esti-mated, RekoDiq, will produce as much as 400,000 tons of copper and 500,000 ounces of gold once upon completion of its first phase.
For the development of second phase, there would be requirement of $4.
5bn, which would be funded by the revenues generated from the first phase.
It is worth mentioning that, RekoDiq project is jointly owned by Federal Government and Balochistan Government (50% shares) while remaining 50% shares are held by international firms.
In the bilateral relationship between Pakistan and Saudi Arabia, the Kingdom has constantly shown will-ingness to assist Pakistan in various fields.
During economic crisis, the Kingdom has extended its full sup-port for Pakistan’s economic revival.
In October, 2024, high-powered business delegation of the Kingdom of Saudi Arabia visited Pakistan.
The delegation was headed by Saudi Minister for Investment, Sheikh Khalid Bin Abdul Aziz Al Faleh.
During the visit of the Saudi business delegation, both countries signed 27 organic agreements and MoUs of approximately $2 billion.
There are numerous opportunities for the economic co-operation between both brotherly countries as explained by Saudi Investment Minister.
He said that, “there were no limits to the possibilities of economic cooperation between the two countries.
” The delegation also visited the Special Investment and Facilitation Council (SIFC) where both sides debated and agreed on vari-ous investment plans in several sectors.
Saudi Investment Minister and his delegation had meetings with President, Prime Minister and Army Chief.
This phase of the economic cooperation between both countries is continuation of the understanding reached between Prime MinisterShahbaz Sharif and Saudi Crown Prince Mohammad Bin Salman (MBS) on April 8, 2024.
Thereafter, a high-level delegation from Saudi Arabia, led by Saudi Foreign Minister Prince Faisal Bin Farhan Al Saud visited Pakistan.
As agreed between the Crown Prince of Saudi Arabia and the Prime Minister of Pakistan, the Kingdom has a plan to make long-term investment in in Pakistan over next five-years.
This investment will be directed towards mutually agreed fields such as energy, IT, minerals, defense and agriculture sectors under the Special Investment Facilitation Council.
Going by chronology, the Islamic Republic of Pakistan and Kingdom of Saudi Arabia established their bilateral relationship soon after Pakistan came into being in 1947.
This beginning of relations between the two Muslim countries was based on a solid foundation of Islamic ideology.
Pakistan and the Kingdom of Saudi Arabia signed a “Treaty of Friendship” in 1951.
This treaty, in fact, laid the formal basis for the bilateral relationship between these two Muslim brothers.
Apart from cooperation between the two, this Treaty of Friendship devised a mechanism for political, diplomatic, cultural, economic and religious relationship between the Kingdom and Pakistan.
Based on this, bilateral relations “were buttressed over the coming decades by a tradition of strong financial and strategic assistance extended to each other by the two brotherly countries whenever required.
” Upon taking over the power in 2015, King Salman Bin Abdul Aziz reiterated his relationship with Pakistan at all levels: the political, strategic, economic, cultural and people to people.
Un-der King Salman and Crown Prince Muhammad Bin Salman (MBS) there has been revitalization in the Saudi Kingdom at political, military, economic and cultural levels in the last five years.
The Kingdom has been reformed under the vision of MBS, which aims at bringing elements of moderation to Saudi society, a futuristic approach to education, pluralism and a corruption-free environment.
His Excellency Ambassador Nawaf bin Said Al-Malki, the Saudi Ambassador to Pakistan, has acted as pivot in bringing this Saudi investment to Pakistan.
He is highly popular among the people of Pakistan, media circles, military and political circles, as well as the academic community of Pakistan.
The Kingdom has also expressed its interest for exploring other mineral resources and investing further in Chagai, a mineral-rich region of Pakistan in the Province of Balochistan.
In the renewed optimism: “There are essentially no limits to what Saudi Arabia and Pakistan can do in the economic sphere, just like there are no limits to our friendship, to our bonds, to our historic relations.
”Pak-Saudi relationship will further boost as a result of Saudi investment in various areas including Re-koDiqProject in Balochistan Province.
Saudi Arabia has always supported Pakistan at crucial times.
Both share their concerns over regional and international issues through the bond of bilateralism.
During the era of King Salman and Crown Prince MBS, this relationship has further cemented to make a new history of bilateral cooperation at; political, social, military and economic fields.
Saudi investment and development of mining sector will greatly contribute towards toward socio-economic development of the Balochistan Province.
— The writer is Professor of Politics and IR at International Islamic University, Islamabad.
(drmkedu@gmail.com)
