Pakistan has been facing economic crisis for a long time and despite the help of friendly countries including the International Monetary Fund (IMF), the condition of the economy does not seem to be improving much. But do you know that Pakistan also has a treasure that can end the country’s economic crisis in a jiffy and this is a treasure of gold. No, we are not talking about Pakistan’s gold reserve, but about the gold mines present in Balochistan, especially the Reko Diq mine, in which the government is preparing to sell 15% stake to Saudi Arabia.
According to a recent report by The Express Tribune, Saudi Arabia’s Public Investment Fund (PIF) has offered to buy a 15% stake in the Reko Diq Mining Project. Along with this, it has also offered a grant to the Pakistan government for building infrastructure around the mining sector.
Quoting government officials, the report said that in response to Saudi’s proposal, Pakistan has decided to form a committee, which will review it and give its suggestions to the Federal Cabinet for approving the final negotiated price. It is worth noting that Barrick Gold has 50 percent stake in Reko Diq mining project, while the remaining 50 percent is owned by the governments of Pakistan and Balochistan.
PAK economy may get relief
In the delicate phase of Pakistan’s economy, the gold and copper mines present in the country have the potential to overcome the crisis. If we talk about Reko Diq located in Chagai district of Balochistan province, then according to reports, it is filled with crores of tonnes of gold. Exploitation of this treasure can help in reducing Pakistan’s economic crisis. Let us tell you that Reko Diq Mine is one of the largest gold and copper mines in the world.
So much gold was found in the first excavation
Pakistan’s Balochistan province is considered very rich in terms of natural resources and the mines present here are full of gold and copper reserves. According to reports, when the Reko Diq mine was excavated for the first time in 1995, 200 kg of gold and 1700 tonnes of copper were extracted from here in the first four months. At that time, experts had hoped that about 400 million tonnes of gold could be present in this mine, the estimated value of this gold is said to be more than 1 trillion dollars.
According to an old Bloomberg report, Pakistan’s Reko Diq is one of the largest undeveloped copper and gold deposits in the world, capable of producing 200,000 tonnes of copper and 250,000 ounces of gold over more than half a century. However, this mining project was halted due to a dispute between the Pakistan government and Barrick Gold & Antofagasta PLC.
Pakistan’s debt is equal to 42% of GDP
Due to its poor economic condition, Pakistan has taken loans worth billions of rupees from the whole world and is still taking more. According to a report by Business Today, Pakistan has a foreign debt of $124.5 billion, which is 42 percent of its GDP. After the help received from the IMF, there has been some increase in its treasury, but it is proving insufficient to improve the conditions of the country.
After receiving financial aid of more than 9000 crores from the International Monetary Fund on 30 April this year, Pakistan’s foreign exchange reserves rose to 1.20 lakh crores in May. In such a situation, the government says that the only option left is to sell government companies.
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