The Economic Coordination Committee (ECC) of the federal cabinet has approved $7.7 billion in financing for the Reko Diq copper-gold mining project and moved to secure an additional $3.5 billion in limited recourse financing.
The meeting, chaired by Finance Minister Senator Muhammad Aurangzeb, was informed that the project is expected to generate $53 billion in revenues within Pakistan. The revenue distribution includes $11 billion in fiscal revenues for the Government of Balochistan, $6 billion in free carry for the provincial government, $9 billion for Balochistan Mineral Resources Limited (BMRL), $11 billion in fiscal revenues for the federal government, and $15 billion in equity inflows for Pakistan Minerals Pvt Ltd (PMPL).
The ECC also reviewed a summary from the Petroleum Division regarding approvals for definitive agreements and financial commitments for the project. The forum approved the final terms with the condition that any major changes in the execution documents, as determined by project advisors, must be resubmitted to the ECC for approval.
Another summary from the Ministry of Railways was discussed, concerning a $390 million bridge financing agreement to construct a 1,350-kilometre railway line to transport large volumes of export material from the Reko Diq mines in Balochistan. The proposal was approved, and both the Railways and Finance ministries were directed to present a progress report by March 2026.
Finance Minister Aurangzeb said the approvals reflect the government’s determination to advance this landmark initiative. He noted that the Reko Diq project would unlock one of the world’s largest undeveloped copper-gold reserves, create jobs, enhance infrastructure, and deliver long-term socio-economic benefits for Balochistan and the country.
The meeting was attended by Federal Petroleum Minister Ali Pervaiz Malik, Minister for National Food Security Rana Tanveer Hussain, Minister for Board of Investment Qaiser Ahmed Sheikh, federal secretaries, and senior officials from relevant ministries and regulatory bodies.
