ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved key agreements and financing plans for the first phase of the $7.723 billion Reko Diq copper-gold project. The ECC also cleared a $390 million bridge financing facility to help construct a 1,350-kilometre railway line linking Balochistan to Port Qasim.
Chaired by Finance Minister Senator Muhammad Aurangzeb, the ECC gave approval to agreements between state-owned enterprises, the Balochistan government, and international lenders. The revised financing structure includes $3.5 billion in debt, compared with $3 billion earlier, along with adjusted equity contributions based on the project’s final cost.
According to the approved plan, 35 per cent of the total cost will be borne in rupee terms. Pakistan Minerals Pvt Ltd (PMPL) and Balochistan Mineral Resources Ltd (BMRL) will contribute $2.145 billion and $1.287 billion, respectively. After accounting for debt financing, these amounts reduce to $1.173 billion and $704 million. The ECC permitted state-owned firms to repatriate funds through PMPL over seven years to meet their equity or loan obligations.
Phase-I of the mine is scheduled to begin production by the end of 2028. The project is expected to operate for 37 years, generating nearly $90 billion in operating cash flows. Out of this, around $53 billion is projected to remain in Pakistan through fiscal revenues, equity inflows, and other returns to federal and provincial stakeholders.
The ECC also approved a development and financing plan for the railway link. Under the arrangement, the government will provide a $390 million loan to the Reko Diq Mining Company (RDMC). The railway will connect the mine to Port Qasim and is classified as a qualified investment under the Foreign Investment (Promotion and Protection) Act 2022.
The Ministry of Railways has been directed to share final agreements with the Finance Division and submit progress reports by March 2026. The proposed line will connect ML-I and ML-III via Port Qasim, with urgent upgrades needed on the Nokundi–Rohri section.
The approvals were supported by the ministries of finance, petroleum, railways, law, and foreign affairs, and were endorsed by the Prime Minister following recommendations from the Economic Affairs Division.
In other news read more about: ECC Approves Agreements Related to Reko Diq Project Financing
