Mining plays a decisive role in the economic development of countries around the world. It involves extracting valuable minerals from the earth's crust essential for various industries. Saudi Arabia and Pakistan have recognized the importance of mining in powerful economic growth and are collaborating to harness their mineral resources.
Saudi Arabia brings expertise in upstream extraction of natural resources and significant capital investment. With its advanced technologies and financial resources. While Pakistan is gifted with rich mineral resources, including coal, copper, gold, and iron ore.
Saudi Arabia's keen interest and potential investment in Pakistan could revolutionize the country's mining sector. With its Public Investment Fund exceeding $1 trillion in value, Saudi Arabia is poised to forefront a potential in mining, allocating a portion of this fund towards this transformative recovery attempt.
Minerals like copper are vital in powering lithium batteries and driving the transition towards clean energy and sustainable development. There's a global push to secure more natural resources, especially those like copper essential for renewable energy systems. However, many of these minerals are found in politically unstable regions, underscoring the need for strategic investment in mining.
Pakistan's rich copper-gold resources have attracted Saudi Arabia's interest, particularly as mining has become a key focus area for its Public Investment Fund. The collaboration between Saudi Arabia and Pakistan in mining holds promise for mutual benefits and significant advancements in Pakistan's mining sector.
It Starts from the Reko Diq project a large-scale mining venture located in the mineral-rich region of Balochistan, Pakistan. It claims vast reserves of copper and gold, making it a valuable asset for both countries. The project aims to extract these minerals efficiently, contributing to economic growth and development.
Balochistan's government supports this international partnership but hesitates to reduce its shareholding. A potential compromise could involve the kingdom acquiring federal shares currently held by OGDCL and PPL, which would reshape the project's stake structure. Share distribution discussions are ongoing, with no finalized agreement reached at this stage.
Saudi Arabia's interest has the potential to either illuminate Pakistan's mining narrative or become yet another unrealized aspiration. The outcome hinges significantly on strategic management by our security establishment, which oversees Pakistan's economic affairs through the Special Investment Facilitation Council.
