In a major victory for Pakistan, the International Finance Corporation (IFC) and World Bank approved a concessional loan of $700 million to the Reko Diq project, a large mining and resource development project.
The approval, given during a board meeting in Washington, is a major diplomatic triumph for Pakistan and a huge loss for India, which had worked hard against the funding.
Due to this approval, the private sector would be investing $2.5 billion in the Reko Diq project, one of the most significant projects of Pakistan.
This success in securing the loan is a testimony to the successful diplomatic efforts of Pakistan, particularly in the face of opposition from India.
Prime minister’s advisor Dr Tauqeer Hussain Shah was instrumental in this success. He led the drive at the World Bank, successfully lobbied for the loan.
These efforts were crucial in getting this approval, which is a big landmark in the success of the Reko Diq project.
This approval of the loan makes Pakistan economically stronger and emphasizes its effective diplomatic gamesmanship in getting key investments for the country’s future.
The support for this mega project is especially noteworthy in the context of regional geopolitical tensions, India proactively trying to prevent the funding of the project.
By this move, Pakistan has made an important advancement towards ensuring the success of the Reko Diq project, which will be a leading player in the country’s resource development industry.
Earlier, Asian Development Bank (ADB) approved an $800 million package of funds for Pakistan to bolster the country’s foreign reserves, after a five-day delay in last week’s board meeting.
It includes a $300 million budget support loan and $500 million of guarantees to ease Islamabad’s access to foreign commercial loans, senior government officials said on Monday.
