The Economic Coordination Committee (ECC) has approved agreements related to the financing of the Reko Diq project.
A bridge financing agreement worth $390 million for laying a 1,350-kilometre railway track has also been cleared. The railway will support the export of material from Balochistan’s mines.
Chairing the ECC meeting, Finance Minister Muhammad Aurangzeb said the Reko Diq project, with its large gold and copper reserves, would contribute to employment opportunities, infrastructure development and the region’s long-term economic prosperity.
The meeting considered a summary from the Petroleum Division, seeking approval for final agreements and financial commitments concerning the Reko Diq project. According to the Ministry of Finance, the approvals have cleared the way for work to commence on the project.
The ECC approved the proposed terms and directed that, should there be any major change in the final form of the agreements after legal and financial review, the matter be brought before the ECC again.
The committee also considered a summary from the Ministry of Railways, which sought approval for a Rail Development Agreement with the Reko Diq Mining Company and the associated $390 million bridge financing agreement. The railway will facilitate large-scale transport of export goods from Balochistan’s mines.
The ECC approved the proposal and directed the Ministry of Railways to share copies of both agreements with the Ministry of Finance for further analysis. Both ministries were also asked to present a report to the ECC by March next year regarding the implementation of the project.
Finance Minister Muhammad Aurangzeb said the approvals reflected the government’s commitment to advancing this historic project, which has the potential to transform Balochistan’s economic landscape and provide broad benefits for the people of Pakistan. He said the Reko Diq project would not only unlock one of the world’s largest undeveloped copper and gold reserves, but would also help generate employment, improve infrastructure and support long-term socio-economic development in 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 Investment Qaiser Ahmed Sheikh, federal secretaries, and senior officials of the relevant ministries, departments and regulatory bodies.
