It has created an uproar, angry political factions and bloggers alike are criticizing Pakistan’s recent deal with Saudi Arabia over a 15 percent investment in the country’s Reko Diq mining project. However, it has the potential of being a turn of things for Pakistan — the chance to make use of one of the biggest undeveloped copper and gold mines in the world for industrial growth and to strengthen bilateral relations. Militants from Balochistan’s nationalist party JUI since last May have been fighting to block trucks carrying goods to the port of Ormara, which is being developed for the purpose.

Saudi investment in Reko Diq is more than a financial deal; it’s a strategic vision for economic resilience and industrial growth.

As Pakistan faces fundamental economic challenges and the necessity for diversification, this investment, expected to present revenues of around $5 billion by June 2025, is arrived at a sensitive period. Policymakers are taking this venture seriously and it’s being shown by the recent federal cabinet’s approval of the $540 million sale.

Saudi offer is far from an act of exploitation, it is a catalyst for the revitalization of the sector, injecting the funds it so desperately needs after decades of underdevelopment. Additionally, it announces a strategic partnership with a highly influential economic actor in the Middle East, facilitating an economic and geopolitical range of opportunities.

Such foreign investments are criticized by critics as fueling historical grievances among the Baloch people about resource extraction, a highly documented concern of the people. Despite that, structured investment is vital not to be detrimental to local communities.

The Saudi proposal to acquire stakes in the mine project goes further than the original, buying a stake in the mining project and committing to fund necessary bits of infrastructure, those being the development of roads to facilitate access to the mining site. These measures are expected to increase connectivity and market access to the local community, making way for inclusive growth in an area that has been behind for years.

Also, the Pakistani government’s set up of the Special Investment Facilitation Council (SIFC) is indicative of Pakistan’s determination to spur foreign investments by clearing it and ensuring transparency. Engaging with international investors within a structured framework will help Pakistan to avoid potential conflicts with the current industry and reap the benefits of advanced technology and managerial expertise.

Balancing resource sovereignty with foreign expertise is key to transforming Pakistan’s mining sector into a modern, competitive industry.

Barrick Gold, which currently owns 50 percent of Reko Diq also, has said it is open to a Saudi investment, but in a cooperative fashion then a unilateral one. The type of partnership on offer encourages technology transfer and strengthens local capacities in mining and resource management.

The case of the Saudi investment as inherently negative in effect is telling this narrative that does not recognize the potential for an economic transformation. Pakistan needs to modernize its mining sector through foreign partnerships largely in response to a global capital growing more certain about what projects to invest in, namely leading ESG and sustainable standards projects. This investment will spark the infusion of investment, facilitating ancillary sectors, job creation as well as regional development to convert Reko Diq from a forsaken asset to a vibrant growth engine.

What the Saudi offer amounts to in the end is a far greater amount than a financial transaction, it is a strategic vision for a modern, resilient economy. Now, in the middle of paths that lead to hope and fear, Pakistan needs to make sure it strikes that balance between what is legitimate in the way of concerns about resource sovereignty and what is, readily, obvious potential for progress.

Pakistan’s Special Investment Facilitation Council (SIFC) signals a commitment to transparent, structured foreign investments.

The conundrum is to write laws on how local communities can reap from their resources and use foreign experts to drive the country forward but equally benefit. In this light then, it is important to consider: will Pakistan take advantage of this period of renaissance or will entrenched skepticism continue to stymie Pakistan’s economic future?

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.