Pak Economy

Reko Diq project — exploiting own treasures

Khalid A Khokhar
Amongst dozens of ongoing mega development projects in Balochistan, Reko-Diq gold and copper mining project is considered to be a big national strategic asset that would transform Balochistan as the richest province in the country. According to experts involved in mining and exploration, some 12.3 million tons of copper and 20.9 million ounces of gold lie in the Reko Diq area (EL-5) in the Chaghi area of Pakistan’s southwest Baluchistan province – bigger than those evaluated at Sarcheshmeh in Iran and Escondido in Chile. The discovery heralded attraction of all the 12 major companies involved in mining & exploration business with the mining magnets started “behind-the-scene lobbying” for getting the contract at Reko-Diq from Balochistan Development Authority (BDA). After due deliberations, a Canadian and Chilean company Tethyan Copper Company (TCC) was given the licence for exploring copper, gold and other base metals in EL-5 area, by the government of Balochistan. Under the agreement, 75 per cent shares were given to TCC and 25 per cent to the BDA. Reports emerging from various sources indicate that the US $52 billion of natural deposit will be sold for just US $08 billion to the TCC. The mind-boggling question is why 75% of reserves are being given to get 25% back after investing 25% in (EL-5) project? According to reliable estimate, only a small part of the Reko Diq gold and copper mines (EL-5) have deposits worth US $270 billion. Two licences (EL-6 & EL-8 other bigger deposits in the same belt) were given to the same company (TCC) on a 100 per cent ownership basis and without any share to the government of Pakistan.
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Pak. Economy: Cautious monetary policy in an uncertain environment

Almost 550 basis points have been already added to the discount rate in a 
period of 18 months. The rationale on the basis of which these points were added were there, although, with lower intensity, but the tolerance level of the 
economy was not such which can afford another addition to the current discount rate

The most optimistic expectation of the Monetary Policy Statement (MPS) issued in the end of January 2009 was keeping the discount rate unchanged at its current level of 15 per cent. Almost 550 basis points have been already added to the discount rate in a period of 18 months.Read More »Pak. Economy: Cautious monetary policy in an uncertain environment

Pakistan-IMF deal has many hidden conditions

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By Ikram Hoti

ISLAMABAD: The IMF deal will bring the consumers, subscribers and provincial governments on a collision course after its hidden conditions will be revealed.

The major controversy is about the interest rate to be paid by Pakistan. The standby facility being offered is said to be the highest ever on a soft-loan mark-up of 3.51 to 4.51 per cent agreed to by any country for foreign currency bailout.Read More »Pakistan-IMF deal has many hidden conditions

Now a session on Pakistan economy

By Dr Pervez Tahir

 PAKISTAN is going through its familiar politico-economic cycle. A military authoritarian regime ends up in disaster. A democratic transition takes place. The economy loses the confidence of its donors.Before the democratic regime can even plan a change in favour of the people, the IMF comes in. The prophets of doom start shouting from the rooftops about the political ineptitude, corruption and economic incompetence of the political class. The stage is thus set again for the angels.Read More »Now a session on Pakistan economy