Pakistan and Canada investigate investment opportunities as the Reko Diq mining project progresses.

Pakistan and Canada are seeking to enhance collaboration in the minerals and energy sectors as Islamabad intensifies initiatives to revitalize protracted mining projects, including the Reko Diq copper-gold mine, one of the largest undeveloped mineral deposits globally, as stated by Pakistan’s Information Ministry this week.

Recent advancements in implementation encompass multilateral financing agreements with international banks and institutions, alongside significant equipment contracts, including a $440 million agreement with Japan’s Komatsu for mining machines, indicating preparedness for construction phase operations commencing in 2026.

Last month, Washington sanctioned $1.25 billion in financing from the US Export-Import Bank for Reko Diq, which is anticipated to facilitate up to $2 billion in US equipment and service exports for the initiative.

The initial production is anticipated by late 2028 under the renewed collaboration, with projections indicating an annual output of approximately 200,000 tons of copper and considerable gold yields as operations expand.

This initiative is pivotal to Islamabad’s policy of establishing mining as a cornerstone of economic recovery, as it organizes international mineral investment forums, pursues relationships with Western and Gulf nations, and formalizes cooperation agreements on essential minerals, particularly with the United States.

Authorities regard extensive mining initiatives as possible catalysts for exports, foreign exchange revenue, and employment generation in a nation contending with debt challenges and sluggish economic growth.