Pakistan has reassured foreign investors of its capacity to secure the Reko Diq copper-gold mine project, underscoring the initiative’s strategic importance in the country’s broader effort to attract foreign direct investment and expand mineral exports. The assurance comes after Canada’s Barrick Gold Corporation initiated a review of the project in response to deadly militant attacks in Balochistan on January 30-31, 2026.
Balochistan Chief Minister Sarfraz Bugti addressed concerns following Barrick Gold’s decision to reassess the project’s security environment. Barrick Gold, which co-owns the Reko Diq mine in partnership with Pakistan’s federal government and the Balochistan provincial government, announced the review after coordinated assaults in the region raised fresh questions about investor safety and operational continuity.
Reko Diq is regarded as one of the world’s largest undeveloped copper and gold deposits. The project is expected to commence production in 2028 and is projected to generate approximately $70 billion in free cash flow and $90 billion in operating cash flow over its lifecycle. These projections position the mine as a central pillar of Pakistan’s long-term mineral development strategy and a potential catalyst for foreign exchange earnings.
Chief Minister Bugti acknowledged that security concerns in Balochistan remain a challenge but stressed that the government is fully committed to safeguarding foreign investment. He stated that authorities possess both the capacity and capability to protect international stakeholders involved in strategic projects. According to him, the provincial and federal governments remain operationally aligned in ensuring that the Reko Diq project proceeds without disruption.
To address evolving risks, Bugti revealed that authorities are working to enhance security arrangements in mineral-rich areas. Proposed measures include the establishment of a dedicated protection force specifically tasked with securing mining zones, as well as tighter border controls aimed at curbing cross-border militant activity. These initiatives form part of a broader security recalibration intended to restore investor confidence following the January incidents.
While reiterating the government’s commitment, Bugti conceded that militant attacks inevitably affect investor sentiment. He acknowledged that such incidents create uncertainty but emphasized ongoing efforts to rebuild trust among international partners. He rejected characterizing the January assaults as a systemic security failure, pointing instead to what he described as a swift recovery of affected areas and a coordinated response by security agencies.
Bugti also alleged external involvement in destabilizing activities within Balochistan, referencing the 2016 arrest of Indian national Kulbhushan Jadhav. Pakistan has previously claimed that Jadhav was engaged in espionage and support for separatist movements in the province. These allegations continue to shape the political narrative surrounding security challenges in the region.
Beyond immediate security considerations, Bugti highlighted the need for a balanced strategy that integrates economic development with sustained security operations. He argued that long-term stability in Balochistan depends on parallel progress in economic inclusion, governance reform, and institutional strengthening. Emphasis was placed on merit-based administration and anti-corruption efforts as essential components of sustainable provincial growth.
The Reko Diq project remains a cornerstone of Pakistan’s mineral expansion agenda. As global demand for copper intensifies amid energy transition trends and infrastructure development, the successful execution of large-scale mining initiatives carries both economic and geopolitical significance. The government’s renewed assurances signal its intent to maintain momentum on the project despite security headwinds, positioning Reko Diq as a test case for Pakistan’s ability to align resource development with investor protection and regional stability.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.