Islamabad, Jun 13 (PTI) The International Finance Corporation and the World Bank have approved a concessional loan of USD 700 million for a major mining and resource development initiative in Pakistan, according to a media report.

The Reko Diq project is located in Balochistan province, which is known as a mineral-rich region of the country.

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This approval by lenders is a significant victory for Pakistan, The Express Tribune newspaper reported.

As a result of this approval, the private sector is expected to invest USD 2.5 billion in the Reko Diq project, one of Pakistan's most important initiatives, the report said.

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With the approval, Pakistan has taken a crucial step forward in securing the success of the Reko Diq project, which is expected to play a pivotal role in the country's resource development sector.

Barrick Gold and the federal and Balochistan governments own the project jointly. The financing for phase one of the project, which is expected to start production in 2028, is being discussed with multiple lenders.

A recent feasibility study has upgraded the project's scope, with phase one throughput increasing to 45 metric tonnes per annum from 40 metric tonnes, and phase two throughput rising to 90 metric tonnes per annum from 80 metric tonnes.

The mine life has been revised from 42 years to 37 years due to the rising throughput, although the company believes unaccounted-for minerals could extend the life to 80 years.

The cost of phase one has also been revised upwards to USD 5.6 billion from USD 4 billion. The World Bank plans to invest USD 2 billion annually in Pakistan's infrastructure over the next decade, the paper said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)