The Special Investment Facilitation Council (SIFC), supervised by civil and military authorities, has given the nod to hire consultants for re-aligning shareholdings in the Reko Diq gold and copper mine project. The restructuring seeks to evenly reduce stakes held by Pakistan and Canada’s Barrick Gold to accommodate Saudi Arabia’s involvement.
This decision emerged from the SIFC’s apex committee meeting led by Prime Minister Shehbaz Sharif and attended by Chief of the Army Staff General Asim Munir. It was reinforced by the government’s vision for the project. It aims to draw Gulf investments, especially in significant initiatives like the Diamer-Bhasha dam and the mining activities at Reko Diq located in Balochistan’s Chagai district.
Read: SIFC – Highlights from the Third Apex Committee Meeting
Terms, Deadlines, and SIFC’s Expanding Role
Following the council’s mandate, the Ministry of Energy will oversee the reduction of shareholdings, ensuring an equitable decrease from both Pakistan and Barrick Gold. Barrick Gold currently claims a 50% stake in the Reko Diq mine, while the governments of Pakistan and Balochistan hold the balance. To cement this decision, the Ministry of Energy has been assigned to form a negotiation committee for discussions with Saudi Arabia. Furthermore, state-owned entities, including Government Holding Private Limited, Oil and Gas Development Company, and Pakistan Petroleum Limited, are set to divest their Reko Diq project shares. All transactions, including document signings, are targeted for completion by December 25, 2023.
Reforming Foreign Investment Facilitation
In response to foreign investor concerns, the SIFC has resolved to expedite visa issuance to a one-day process upon the SIFC Secretariat’s recommendation. A joint initiative between federal and provincial Sindh governments is also underway to establish the Thar Coal Railway Connectivity project within 18 months.
Moreover, the SIFC has highlighted the importance of a harmonized legal framework for the mineral sector, mandating the Ministry of Energy to consult experts to create a unified regulatory structure. The federal government is positioned to play a supportive role, crafting model legislations and rules for adoption by the provinces.
