Economy is a big challenge for the entire country and it needs national consensus and state level efforts. Over time Pakistan’s Armed Forces have also contributed to this effort for settling key disputes in the domain of Socio-economic development of Pakistan. Reko diq dispute settlement is one of the examples of institutional level efforts towards helping government for economic revival of Pakistan.
Pakistan was not only saved from a $11 billion fine in the Reko Diq case in this prevalent economic turmoil but it was also successful in resurrecting a project aimed at extracting massive gold and copper reserves from Balochistan sites. After several rounds of negotiations over the past three years, the Reko Diq agreement was finally finalised.
Reko Diq has the potential to be the world’s largest gold and copper mine. It will free Pakistan from crippling debt and usher in a new era of growth and prosperity. Reko Diq will be a game changer for the Federal, Provincial, and Balochistani governments and people. It will not only restore Pakistan’s investment-friendly image, but will also result in significant economic benefits, the development of indigenous mineral exploration capability, and a significant socioeconomic boost for the people of Balochistan.
The new agreement includes the following socio-economic benefits for Baloch people:
▪️The Government of Pakistan will pay Balochistan’s share in exchange for a long-term revenue stream.
▪️The project will generate approximately 8000 direct job opportunities for skilled and unskilled workers, as well as 12000 indirect job opportunities.
▪️Barrick Gold will invest 1 % (approx Rs 160 Bn) in social uplift and Subsequently 0.4% of revenue per annum for People of Balochistan.
▪️CPEC route and ports will be activated for transportation and export of materials
▪️New infrastructures will be developed including trading routes, connectivity will be improved and trade corridors will be created.
▪️Balochistan’s socio-economic Development will be uplifted because of the dividends of Reki diq project.
▪️Shareholding structure for the foreign firm has been reduced to 50% as compared to earlier 75%. The remaining 50% will be shared between Balochistan govt (35 %) and Three Pakistan State Owned Enterprises (15 %) i.e OGDCL, PPL and GHPL.
▪ The share of economic benefits to Pakistani government and Govt of Balochistan has increased to 63 % (financial effect approx $64 Bn) as compared to only 41 % in the previous agreement.
▪ Shareholding of 50% domestic partnership will result in domestic capacity development in mining and exploration; facilitating subsequent feasibilities and development of huge un-tapped mineral deposits.
Resolution of Reko Diq issue in an amicable manner exhibits that the State has the capacity to resolve very complicated and complex issues, provided there is national consensus and good faith. This national consensus is required in every economic and security effort rather than political blame gaming each other without an iota of evidence.