Transparency issue: Tareen assails Reko Diq deal

Published: January 14, 2011

Former finance minister says it was unfortunate that the Reko Diq deal wasn't transparent, SC should intervene.

KARACHI: Former finance minister Shaukat Tareen has said that it was unfortunate that the Reko Diq deal wasn’t transparent. In a special interview with Daily Express he said that Reko Diq has one of the largest reserves of gold and copper in the world. He said that the Supreme Court had to intervene in the matter because the agreements were not transparent. Shaukat Tareen said that the element of transparency is always maintained when concluding agreements of national interest. He said that as the matter is before the apex court, this project could get delayed. He added that international investors were getting a negative impression about Pakistan because of this.

He said that the steps being

taken now by the provincial government, to make the agreement transparent, should have been taken when the agreement was being finalised. He said that if the country sells the raw mineral reserves it will get 40 billion dollars in 30 years while if they were to do the refining in Pakistan the income from the project will be seven to eight times of this figure.

Some experts estimate the value of the Reko Diq reserves in excess of 500 billion dollars. He said that there are laws and regulations in Pakistan but conflicts surface because they are not implemented.

The former finance minister said that an investment of three billion dollars is required for the execution of the project, which can be completed with the help of foreign companies only. However, rather than selling the raw material, the contracting company should be required to refine gold, copper and other metals within Pakistan. The refined minerals can then be sold so that maximum income is generated.

Published in The Express Tribune, January 14th, 2011.

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Reader Comments (12)

  • S A Wasim
    Jan 14, 2011 - 8:48AM

    I truely agree with the remarks of Tareen Sahib as at present we are absolutely not focusing on the long term returns but are more concerned with the shotcuts.We have countries like China with whom we share good bilateral relations and should request thier assiatance in this reagard instead of leasing out……Recommend

  • Obaid Mirza
    Jan 14, 2011 - 10:06AM

    All praise be to Allah, who has blessed Pakistan with tremendous resources, both in terms of material and human. All we need is God fearing people like Shaukat Tareen, who could honestly manage these resources in the best interest of the country and not for theire personal benefits. If these resources are utilized properly, Pakistan will not only come out of its present economic crises but can become an aid giving country. The corrupt elite class of Pakistan will have to stop exploitation and mend its ways or else be prepared to face unimaginable dire cosequences and wrath of poor masses. Obaid Mirza. Recommend

  • TZ
    Jan 14, 2011 - 10:53AM

    A country of such treasures is facing drought situation in leadership since last 50 years. Its so sad that God has given us every thing but we can not utilize it for our betterment.Recommend

  • Saaq
    Jan 14, 2011 - 12:22PM

    The foreign companies are telling lies to our govt about the actual reserves and their expected value.Riko Diq is world’s 5th largest deposits of gold and copper mine.

    Rebidding for extraction and refinement project is the need of the time to maintain its transparency. TCC was only responsible to survey and explore the site and provide estimates to the Govt of Pakistan.

    I think US also want to destroy this site by a drone attack and that’s they are as usual making baseless allegations of talbanisation in this area. Infact they want the local tribes man to remain away from this site forever and take away all the raw ore to their country for refinement.

    May ALLAH (S.W.T) bless us with sincere and country loving rulers. ameen Recommend

  • Ayaz Mehmud
    Jan 14, 2011 - 2:14PM

    East India company (Robbers&Looters) in 21st Century.
    Recommend

  • Danial Khan
    Jan 14, 2011 - 3:02PM

    May Allah show his mercy on Pakistan. I hope and pray that we get decent leaders. All leaders are corrupt and slaves of the US. May God Almighty help Pakistan. Shame on them!Recommend

  • maitre
    Jan 14, 2011 - 6:23PM

    It was sold during Musharraf’s regime. Why many of so-called experts kept their silence at that time. The apex court should order an enquiry and the government should act as suggested by nuclear scientist Dr. samar Mubarakmund in order to get the maximum benefit from this national resource to rid the country from the IMF and World bank’s clutches as well as foreign debts.Recommend

  • Nadeem Ahmed
    Jan 14, 2011 - 8:17PM

    The bottom line of this deal is that 25 percent shares goes to provincial government and 75% goes to the group of foreign comapnies. I think in these circustances, this is excellent deal. 25% which goes to provincial government is total waste. In return they will not get anything, no protection, no security. Governments which cannot protect itself, how they are going to protect foreigners. Out of 75%, the companies have to pay local war lords, tribesmen and ruthless criminals who rule these backward areas. This is the real expense and no company can forcast these expenses, nor they record it in black and white. The more ransom is paid to these unruly people, more powerful they become and who knows in future what they will do with these foreigners.
    Foreign investment in Baluchistan is great sign of progress. There is no point hindering it at this moment. People lwho never presented a single balanced budget in their life, and stole all resources of poor Baluchi people want their share in such deals. how much money has been refunded to Baluchistan stolen by federal government. Why Baluchistan is still the poorest province, though Islamabad made hundreds of billions from its resources. this is the reason that we cannot get good deals from foreign companies. Their attitue has made local people so aggressive that no one wants to risk unless provided lion share.Recommend

  • Tariq Javed
    Jan 14, 2011 - 9:19PM

    we have wasted out our rich resources at he hands of corrupt politicians who for the sake of their interest have always sold it out to foreigners at much less than projected value of these assets.

    Irrespective of provincial or federal level of politicians, whose credential are always questionable, this matter should be done through transparent procedures, involving credible and professional consultants. Recommend

  • rajasalib
    Jan 14, 2011 - 9:24PM

    How unlucky we are that we are devoid of sincer leadership. we can only pray to Almighty allah to grant us just few if not many.Atleast those who can put their name in the history as true PAKISTANI who can guard the interest of Pakistan.Bravo Tareen although late! yet can contribute your part. May GOD bless you, amin
    rajasalib Recommend

  • nina
    Jan 15, 2011 - 5:11AM

    A comment made by a an American analyst of Wall Street mentioned that because of the copper and gold reserves at Reko Dig, Balochistan and Pakistan can become so prosperous, even more so than the Arab Gulf states. This can only be done with proper and transparent mining and supervision of the work. May Allah guide the leaders of the province of Balochistan and the federal leaders to work together for the betterment of the people of Balochistan and Pakistan. Recommend

  • amjad
    Jan 15, 2011 - 7:00AM

    All the resources of the nation belongs to every citizen of this country. They do not belong to a few no matter who they are. Any deal made with local or internal entity should be transparent and in the long term interest of the country.Recommend

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