Mining Precautions

The World Bank’s private investment arm, the International Finance Corporation (IFC), is set to provide $300 million in debt financing for the Reko Diq copper-gold mine—a proj­ect poised to anchor Pakistan’s emerging economic strategy of in­vesting in critical minerals and natural resources. With projected reserves estimated to be worth over $60 billion, the mine has the potential to become a major source of export revenue and eco­nomic stimulus for Pakistan. But as with all large-scale debt-financed projects, caution is para­mount.

Pakistan must scrutinise the terms of its mining agreements, ensuring that it does not become a mere supplier of raw materials for richer nations to refine, process, and profit from. This pattern—where developing nations remain trapped in the lower rungs of the global value chain—is a hallmark of modern-day economic imperi­alism. Countries across Africa and Southeast Asia have long experi­enced this imbalance, supplying raw materials while wealthier na­tions reap the rewards of value-added production.



A Call for Reform Pakistan must learn from these examples. It cannot afford to re­peat the mistakes of nations that allowed foreign corporations to dominate local resources, offering little in return in terms of rev­enue, employment, or sustainable development. Too often, these deals lead to environmental degradation, exploitation of local com­munities, and meagre benefits for host governments.

Wealth is ex­tracted, while the long-term costs—pollution, displacement, and lost opportunity—are borne by the people. Reko Diq must not become another such case. While foreign in­vestment and international partnerships are critical to unlocking the mine’s potential, Pakistan must retain control over the terms of de­velopment.

Revenue-sharing models, local employment guarantees, environmental safeguards, and transparent oversight mechanisms must be prioritised. Most importantly, the people of Balochistan—whose land holds these vast mineral riches—must see tangible ben­efits, from infrastructure and schools to healthcare and clean water. Diplomatic Nuance This project can be a turning point.

But only if Pakistan ensures that Reko Diq’s riches uplift the nation, rather than enriching others at its expense. Tags: mining precautions.