By Sardar Khan Niazi
Few opportunities come twice in a generation — and fewer still offer the promise of transforming a nation’s economic landscape. Pakistan’s Reko Diq gold and copper project, nestled in the rugged hills of Baluchistan, is one such opportunity. After years of legal battles, mismanagement, and missed chances, the revival of this multi-billion-dollar mining project marks a potential turning point for Pakistan’s economy. However, whether Reko Diq becomes the game changer it depends entirely on how it is handled from here on. Located in Chagai district near the Iran-Afghanistan border, Reko Diq is one of the world’s largest untapped reserves of copper and gold. Estimates suggest it holds over 5.9 billion tons of ore with significant quantities of copper and gold — minerals in ever-growing demand as the global economy moves towards green technologies, electrification, and digitalization. For a country perpetually on the brink of economic crisis, this could not be more timely. In December 2022, Pakistan and Canadian mining company Barrick Gold finally reached a settlement, paving the way for a $7 billion investment in the project. Barrick will hold a 50% stake, while the federal and Baluchistan governments as a group hold the other half. Groundbreaking work has already begun, with full-scale production expected by 2028. The project is forecast to generate tens of billions of dollars in revenues over its life span, create thousands of jobs, and inject critical infrastructure and development into a long-neglected province. However, Reko Diq is more than just a mining venture — it is a litmus test for governance, federalism, and Pakistan’s ability to attract and sustain foreign investment. For one, transparency is crucial. Past debacles such as the 2013 Supreme Court ruling that annulled Tethyan Copper Company’s (TCC) contract and triggered a $6 billion arbitration penalty at the World Bank’s ICSID have already stained Pakistan’s reputation as an investment destination. This time, the rules must be clear, the governance watertight, and the benefits equitably shared — especially with the people of Baluchistan. Baluchistan, despite being rich in natural resources, remains the most underdeveloped and aggrieved province in the federation. It is imperative that the province sees real, tangible benefits from Reko Diq — not just in the form of royalties and jobs, but also in education, healthcare, infrastructure, and political inclusion. Ignoring this dimension would not only be a big moral failure but could also fuel the incorrect sentiment. Moreover, environmental safeguards must not be an afterthought. Mining projects, especially of this scale, can wreak havoc on local ecosystems. Pakistan’s environmental regulatory bodies must be empowered and made accountable to ensure compliance with international environmental standards. Then there is the broader question: can Pakistan leverage Reko Diq to diversify its economy? Too often, our economic dreams ride on one miracle fix — the CPEC, the Gulf remittances, or the latest IMF tranche. Reko Diq cannot be another quick source of income. It must be part of a broader strategy to invest in mining, build processing industries, develop technical expertise, and move up the global value chain. Otherwise, we will simply be shipping raw materials abroad while importing finished products — a colonial pattern we should have outgrown by now. In a region mired in uncertainty, with a population craving economic justice and political stability, Reko Diq represents a rare alignment of opportunity and need. The government, judiciary, media, and civil society must all act as watchdogs to ensure this opportunity is not squandered — or worse, hijacked by the usual nexus of incompetence and corruption. Handled right, Reko Diq can be a true game changer –not just for the economy, but for the idea of a just and inclusive Pakistan.
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