Karachi: A Saudi company has announced plans to invest up to $1 billion in the Reko Diq mining project, marking a significant development in Pakistan's mining sector and providing a potential boost to the country's economy.
According to a statement by Taurus Securities Limited, the announcement comes amid a series of economic measures and agreements aimed at strengthening Pakistan's financial position. The government's recent agreements for a $1 billion loan with two Middle Eastern banks and the fast-tracking of deregulation under International Monetary Fund terms are part of broader efforts to stabilize the economy.
On the domestic front, the Karachi Stock Exchange experienced a downturn, with the KSE-100 index losing 803 points to close at 115,042. The trading volume reached 766 million shares, with significant activity in the refinery, cement, and banking sectors. While companies like CNERGY, MEHT, and KOSM showed top performance in terms of price change, PSX, SEARL, and PAEL were among the top decliners.
In related financial news, foreign investors have withdrawn $38.5 million from Treasury bills by January 10, reflecting concerns over potential capital flight amid legislative discussions on a new tax bill. The government is also exploring strategic partnerships at the World Economic Forum 2025, as stated by an adviser to the Finance Minister.
The investment by the Saudi firm in the Reko Diq project is seen as a positive development in attracting foreign direct investment and enhancing Pakistan's mining capabilities. The project, located in the mineral-rich Balochistan province, has been a focal point of international interest due to its significant gold and copper reserves.
Moreover, the Oil and Gas Regulatory Authority has approved the export of 30,000 tonnes of furnace oil by Cnergyico, further underscoring the government's commitment to fostering international trade and investment.
In other economic initiatives, the Punjab government has launched a Rs 132 billion business finance and card schemes, while the KP government has introduced the 'BizHub' portal to empower small and medium enterprises.
The developments reflect a concerted effort by Pakistan to strengthen its economic framework, attract foreign investment, and address fiscal challenges.