In a major diplomatic and economic victory, Pakistan has secured a $700 million concessional loan from the International Finance Corporation (IFC) and the World Bank to support the development of the Reko Diq mining project. The funding approval came during a recent board meeting in Washington and is being hailed as a critical step forward for one of Pakistan’s largest resource development initiatives.
The loan is expected to unlock an additional $2.5 billion in private sector investment for the Reko Diq project, significantly boosting Pakistan’s economic outlook. The move also represents a notable setback for India, which had lobbied against the financing, citing geopolitical concerns.
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Dr. Tauqeer Hussain Shah, advisor to the prime minister, was instrumental in securing the funding. Leading Pakistan’s diplomatic efforts at the World Bank, Dr. Shah’s strategic lobbying and coordination played a key role in overcoming international resistance, especially from India.
The approval not only reinforces confidence in Pakistan’s economic potential but also signals global institutional support for the country’s long-term development goals. Given the geopolitical climate, the decision is seen as a robust endorsement of Pakistan’s stability and capacity to deliver on major infrastructure and resource-based projects.
As work on Reko Diq accelerates, the project is expected to become a cornerstone of Pakistan’s mining sector and a symbol of effective international diplomacy under challenging circumstances.
