Saturday, June 15, 2024

Pakistan to Sell 15% Stake in Reko Diq Project to Saudi Arabia

Pakistan and Saudi Arabia have reached an agreement where Pakistan will sell 15% of its shares in the Reko Diq project to Saudi investors. As a result, Pakistan’s stake in the project will decrease from 50% to 35%.

This decision was made after Barrick Gold, a key partner in the project, refused to sell its shares. The Balochistan government will maintain its 25% share, while the stakes held by federal state-owned enterprises (SOEs) will be reduced from 25% to 10%.

The agreement was facilitated by the Special Investment Facilitation Council (SIFC), which aims to attract more investment into Pakistan. This move is part of a broader strategy to enhance economic cooperation and investment flows between Pakistan and Saudi Arabia.

The deal is supported by recent high-level interactions between the two countries. Additionally, the upcoming Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) and the Bilateral Investment Treaty will further bolster this development. These agreements are expected to create a more favorable environment for trade and investment, benefiting both nations.

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