Islamabad (Commerce Desk) The European Investment Bank (EIB) has expressed interest in investing in Pakistan’s major Reko Diq mining project and has offered funding for its infrastructure development, with reports also indicating a possible demand for access to key mineral resources in return.
EIB representative Marco Arena said that Europe requires critical minerals for its green and digital economy, which is why strong partnerships with projects like Reko Diq are essential. He added that engineering challenges are relatively manageable, while the real challenges lie in policy, regulation, economic stability, and currency risks.
On the other hand, Director General Minerals at the Ministry of Energy, Dr. Nawaz Ahmed Wark, termed the claims of $6 trillion mineral reserves as highly exaggerated and not based on credible research. He made these remarks while addressing a meeting of the European Union and Pakistan Business Forum.
He also stated that contractors have raised concerns over the imposition of sales tax and withholding tax during the development phase of the Reko Diq project. However, the government has already exempted project revenues from taxation to encourage foreign investment.
According to Dr. Wark, the Ministry of Energy is consulting with the Ministry of Finance on the matter, and it is expected that these taxes may be deferred until production begins.