In a recent development, the Investment Facilitation Council, jointly managed by the Pakistani government and the Pakistan Army, has granted approval for the engagement of consultants to equitably adjust the ownership shares of Pakistan and Canada’s Barrick Gold Company in relation to the Rekodic project. This decision is a result of Saudi Arabia’s participation in the project.
Insider sources have conveyed that the decision to involve another nation in the Rekodic project was formalized during a meeting of the Apex Committee of the Investment Council. Prime Minister Shehbaz Sharif chaired this meeting, and it was reported that significant progress was made.
A previous report by The Express Tribune stated that the Investment Council had preliminarily sanctioned 28 substantial projects worth billions of dollars for Gulf countries. These encompassed initiatives like the construction of the Diamer Bhasha Dam and mining activities at Rekodik.
During his final session as the chairman of the investment council, the prime minister instructed the energy ministry to engage consultants for the purpose of offering shares in the Rekodic mining project to potential investors, according to government officials.
As per the decision, the adjustment of ownership stakes in the Rekodic project will be conducted in an equitable manner, with both Pakistan and Barrick Gold Company seeing proportional reductions. Presently, Barrick Gold holds a 50% stake in Rekodic, while the remaining 50% is divided among federal and provincial governments. The prime minister also affirmed that the Investment Council would function under the theme of “Rising Pakistan,” reflecting the aspirations of both civilian and military leadership. Moreover, the council aims to contribute to reducing the country’s external debt burden.
The Apex Committee of the Investment Council additionally determined that the Ministry of Energy will establish a negotiation committee to engage Saudi Arabia as a partner in the project. Similarly, this ministry will oversee the allocation of shares from the Rekodic project to three government officials representing federal institutions.
Officials from the Ministry of Energy disclosed that the Investment Council has set a deadline of December 25, 2023, to conclude various aspects of the transaction, including the execution of bid documents.
Mark Bristow, the CEO of Barrick Gold, recently stated that the company will maintain its stake in the project, yet expressed openness to Saudi Arabia’s Public Investment Fund if it expressed interest in acquiring shares.
Furthermore, the council decided that the Ministry of Information and Broadcasting, in collaboration with ISPR (Inter-Services Public Relations), will collaboratively craft a positive narrative highlighting the accomplishments of the council’s work. Additionally, Pakistani diplomatic missions are encouraged to actively promote foreign investment.
Recent legislative changes have been introduced by the government to confer legal safeguards to the Investment Council under amendments to the Board of Investment Act.
