Pakistan agrees to sell its 15pc Reko Diq shares to Saudi Arabia

Pakistan has agreed to sell its 15 percent shares in the Reko Diq to Saudi investors, sources said on Friday.

Following the deal, Islamabad's shares in the gold mine would be reduced from existing 50 percent to 35 percent. However, the Balochistan government holds 25 percent shares in the project, while, the federal government’s State-Owned Enterprises (SOEs) stake has 25 percent. 

The venture was decided after Barrick Gold Corporation refused to sell its stakes in the project.

Sources said the federal government’s shares would become the lowest in Reko Diq after the deal is inked with the Kingdom.

However, this would not become a problem for the federal government in any practical purpose. 

A government said that as per the contract, the Barrick Gold Corporation has no right to make any decision unilaterally, "especially about investment".

Experts believe that Saudi involvement in the gold project is expected to play a great role in improving investment in climate change.

Sources claimed that the formal announcement of the deal will take place soon or within the next few weeks.

The deal of the Free Trade Agreement (FTA) with the Gulf Cooperation Council (GSS) would play a crucial role in boosting the Bilateral Investment Treaty (BIT), under which Pakistan had provided the right of international arbitration.

An official said that the caretaker government led by Anwar-ul-Haq Kakar had confirmed FTA and BIT with GCC and now waiting to sign it.