Fresh $25 Million Investment Signals Confidence in Reko Diq
Oil and Gas Development Company Limited (OGDC) has increased its stake in Pakistan’s largest mining project by contributing a fresh $25 million to Reko Diq during the latest quarter. The update was shared in a recent corporate briefing, where company management said that development work at the site is progressing without delays.
The additional funding forms part of Pakistan’s overall contribution to the project through Pakistan Minerals Private Limited, the joint entity that manages the country’s share in Reko Diq. In total, around $75 million was invested in the project during the quarter, underlining its strategic importance for both OGDC and the national economy.
Management expressed confidence that work on the mine remains on track, suggesting that Reko Diq continues to meet development milestones despite a challenging global financial and commodity environment.
Pakistan’s Stake in a World-Class Copper and Gold Deposit
Reko Diq, located in Balochistan, is widely recognised as one of the world’s largest undeveloped copper and gold deposits. Its successful development is expected to transform Pakistan’s role in the global minerals market and diversify an economy that has long depended on textiles and agriculture.
The project is structured as a joint venture. Barrick holds a 50 percent stake, while Pakistani state-owned enterprises, including OGDC, collectively own 25 percent. The remaining 25 percent is held by the Government of Balochistan, ensuring that the host province has a direct share in future revenues and long-term benefits.
Under this ownership model, Pakistan aims to secure export earnings, attract foreign investment and build local capacity in large-scale mining, while sharing project risks with an experienced global operator.
Production Targeted for 2028 with Major Economic Upside
According to the current development plan, Reko Diq is expected to begin production in 2028. Once operational, the mine is projected to become a major source of copper and gold exports, which could help ease Pakistan’s balance of payments pressures and support the rupee over the long term.
Beyond export earnings, the project is anticipated to generate new jobs, demand for local services and opportunities for supporting industries such as transport, engineering and equipment supply. Royalty and tax revenues for the federal and provincial governments are also expected to increase as production ramps up.
The continued flow of investment during the construction and development phase is therefore seen as a positive signal, indicating that key partners remain committed to turning Reko Diq into a long-term economic asset for the country.
OGDC’s Broader Project Pipeline to Boost Gas and Oil Output
Separately from Reko Diq, OGDC’s management highlighted progress on the company’s wider development pipeline. Out of six planned projects, two have already been completed, while four more are currently under development.
These ongoing projects include the Uch, KPD TAY, Bettani and Sinjhoro developments, which are expected to come online between the second half of fiscal year 2026 and fiscal year 2027. Combined, they are projected to add around 215 million cubic feet per day of gas and 5,342 barrels per day of oil to the national energy system.
If delivered on schedule, the new gas and oil volumes should help strengthen Pakistan’s energy supply, reduce reliance on expensive imports and support industrial and household demand. When viewed together with the company’s investment in Reko Diq, OGDC’s strategy reflects a dual focus on traditional oil and gas production and long-term diversification into the country’s mineral resources.
For investors and policymakers, the message from the latest briefing is clear: OGDC is positioning itself as a central player not only in meeting Pakistan’s immediate energy needs, but also in unlocking the future potential of its vast copper and gold reserves at Reko Diq.
