ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Thursday approved $7.7 billion in financing for the massive Reko Diq mining project and also moved to secure an additional $3.5 billion in limited recourse financing.
Chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, the ECC was informed that the Reko Diq project is projected to generate $53 billion in revenues within Pakistan. This includes $11 billion in fiscal revenues for the Government of Balochistan, a $6 billion free carry for the provincial government, $9 billion for BMRL (Balochistan Mineral Resources Limited), $11 billion in fiscal revenues for the federal government, and $15 billion in equity inflows for PMPL (Pakistan Minerals Pvt Ltd).
According to an official statement, the ECC reviewed a summary from the Petroleum Division concerning approvals for definitive agreements and financial commitments related to the Reko Diq Project’s financing. The committee approved the proposed final terms of the agreements, with the instruction that any material deviations in the final execution documents—as determined by the project’s legal and financial advisors and certified by the Reko Diq Mining Company—must be resubmitted to the ECC for approval. The forum also reviewed another summary from the Ministry of Railways regarding a rail development agreement and a bridge financing agreement with the Reko Diq Mining Company. The proposal includes $390 million in bridge financing to construct a 1,350 km railway line for transporting large volumes of export material from the mines in Balochistan.
The ECC approved the proposal and directed the Ministry of Railways to share both agreement documents with the Finance Division for appraisal. It further instructed both the Ministry of Railways and the Ministry of Finance to submit a progress report on the execution and implementation of the project by March next year.
Speaking on the occasion, the finance minister stated that the ECC’s approvals reflect the government’s firm commitment to advancing this landmark project, which has the potential to transform the economic landscape of Balochistan and generate far-reaching benefits for the people of Pakistan. He added that “the Reko Diq Project will not only unlock one of the world’s largest undeveloped copper-gold deposits but also catalyse job creation, infrastructure development, and long-term socio-economic uplift across the region.” The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Board of Investment Qaiser Ahmed Sheikh, federal secretaries and senior officials from relevant ministries, departments and regulatory institutions.
