Business

Pakistan, Saudi Arabia expected to make progress on Reko Diq deal

Published

12 months ago

Farwa

Progress on deal expected during 3-day mineral forum in Riyadh.
Energy minister leads high-level Pakistani delegation.
Delegation likely to discuss KSA’s interest in building refinery.

ISLAMABAD: Talks with Saudi Arabia on a potential investment deal in the Reko Diq copper and gold project are expected to progress during a three-day mineral forum that began today in Riyadh, The News reported citing an energy ministry official on Tuesday.

A high-level Pakistani delegation led by caretaker Energy Minister Muhammad Ali is attending the Future Minerals Forum (FMF), a platform to promote mineral value chains in Africa, Western and Central Asia, which will be held from January 9 to 11 in Riyadh.

The secretary of the petroleum division and officials from the Special Investment Facilitation Council (SIFC), Pakistan Mineral Development Corporation (PMDC), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Geological Survey of Pakistan (GSP) will also be part of the delegation.

The delegation is also likely to discuss Saudi Arabia’s interest in building a refinery in Pakistan, the official said.

“Pakistan authorities may also take up this issue of paramount importance with Aramco officials during the visit.” Aramco wants the participation of Sinopec — a Chinese company in the refinery project and Pakistan has agreed to it.

Saudi Arabia is seeking to attract SR63.7 billion ($170 billion) worth of investment in the mining industry by 2030 to help the country capitalise on its wealth of mineral resources, the total value of which is estimated to exceed SR4.88 trillion ($1.3 trillion), an official said.

In 2022, the Geological Survey of Pakistan (GSP) and Ma’aden, a Saudi-owned mining company, developed an understanding for a survey to locate the treasures of the minerals.

Apart from attending the Forum, the official said, the relevant authorities of Saudi Arabia and Pakistan during the visit will also deliberate on the possible investment in the Reko Diq project and both countries may strike a deal to this effect.

In addition, the visiting authorities are also likely to take up with Saudi Arabia its interest in installing a state-of-the-art deep conversion refinery in Pakistan. The SIFC is highly keen to sell government shares to Saudi investors to enhance the footprints of Saudi investment in Pakistan.

The investment that is to be made by Saudi investors (KSA) will be treated as a strategic investment, one official stated to The News, while quoting SIFC’s top official.

Under the revised agreement, 50% of shares are held by the Canadian company Barrick Gold Corporation whereas Antofagasta of Chile has exited the project in return for $900 million deposited by three entities of the federal government — OGDCL, PPL and Government Holdings Private Limited.

These entities hold a 25% share in the project whereas the same number of shares are owned by Balochistan. Of them, 15% are on a fully-funded basis and 10% on a free carried basis.

The Energy Minister Ali and top officials of the power division have played a pivotal role in the directives of SIFC to make an agreement of the government of Pakistan with K Electric and resolve all its issues to facilitate its main owner which is Aljomaih Power Limited Company of Saudi Arabia.

It was one of the conditions from the Kingdom that Pakistan should first facilitate Aljomaih Power Limited of Saudi Arabia by resolving all issues of KE for more investment in Pakistan in mining, refinery, agriculture and other sectors.

The majority shares — 66.4% — of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

3 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

2 weeks ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.