Saudi Arabia has offered to purchase 15% of the Reko Diq mining project. The kingdom would provide a sizeable grant for the construction of infrastructure surrounding the mining area, making this the first investment made under the auspices of the Special Investment Facilitation Council.
The entire offer consists of a grant to construct infrastructure surrounding the mining region as well as cash for the acquisition of 15% of the shares.
According to government officials participating in the talks, Pakistan has chosen to establish a negotiation committee in response to the Saudi offer.
This committee will study the Saudi offer and submit the final negotiated price to the federal cabinet for approval.
The Public Investment Fund (PIF) of Saudi Arabia has proposed to purchase 15% of the shares via Manara Minerals.
They said that of the 25% of shares the federal government now owns in the Reko Diq Mining project, 15% will be sold to Saudi Arabia.
A representative from the Petroleum Division stated that a negotiating group tasked with concluding the agreement will deliberate on the Saudi offer.
Should the agreement come to pass, it will strengthen the economic links between Saudi Arabia and Pakistan and provide jobs for the local populace.
A $5 billion Saudi cash deposit rollover was reportedly being arranged by Pakistan, which has also asked for a $1.2 billion.
In the event that the agreement is completed, it will strengthen the economic links between Saudi Arabia and Pakistan and provide jobs for local residents.
Pakistan has also asked for a $1.2 billion new oil finance facility and was in the process of arranging the rollover of a $5 billion Saudi cash deposit.
Saudi Arabia has proposed to build road infrastructure surrounding the Reko Diq mining project and to acquire 15% of the shares in addition to this.
Building the Mashkhel-Panjoor road will allow easy access to the mining region, according to the government.