ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet has approved key agreements and financing plans for the $7.723 billion first phase of the Reko Diq copper and gold project, along with $390 million bridge financing for a major railway link from Balochistan to Port Qasim.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, endorsed definitive agreements between state-owned enterprises, the Balochistan government, and lenders to operationalise the long-awaited project. The financing package includes a revised debt structure of $3.5 billion, up from $3 billion, while equity contributions have been adjusted in line with final costs.
Under the plan, 35 percent of project expenses will be covered in rupee terms. Pakistan Minerals Pvt Ltd (PMPL) will contribute $2.145 billion, and Balochistan Mineral Resources Ltd (BMRL) $1.287 billion. After debt financing, these commitments reduce to $1.173 billion and $704 million respectively. The ECC has allowed state-owned enterprises to repatriate funds through PMPL over seven years to meet equity and loan requirements.
Production from the first phase is expected to begin by the end of 2028, with the mine projected to operate for 37 years. Over its lifetime, it is estimated to generate $90 billion in operating cash flows, with $53 billion staying in Pakistan through fiscal revenues, equity inflows, and other returns to federal and provincial stakeholders.
The ECC also approved a $390 million rail financing arrangement with the Reko Diq Mining Company (RDMC) for a 1,350-kilometre line linking the mine to Port Qasim. Classified as a qualified investment under the Foreign Investment (Promotion and Protection) Act 2022, the railway project is set to improve connectivity and support mineral exports. The Ministry of Railways has been directed to share final agreements with the Finance Division and provide progress updates by March 2026.
The approvals were supported by the ministries of finance, petroleum, railways, law, and foreign affairs, following a green signal from the Prime Minister based on recommendations from the Economic Affairs Division. Federal ministers and senior officials from relevant departments also attended the meeting.