Pakistan has approved a $390 million Balochistan railway project to build a 1,350 km track that will connect the province’s mines with export markets. The new railway will transform how copper and gold from the Reko Diq mine are transported.
Reko Diq: One of the World’s Largest Untapped Mines
The Reko Diq mine in Balochistan is home to one of the biggest untapped deposits of copper and gold. Experts estimate it could generate over $90 billion in revenue across 37 years.
The project had been stalled for years due to political and legal disputes but was revived in 2022 through a settlement with Canada’s Barrick Gold.
Joint Venture for the Railway Project
The Reko Diq Mining Company (RDMC), a joint venture between Barrick Gold and the governments of Pakistan and Balochistan, will provide bridge financing.
According to Pakistan Railways Minister Hanif Abbasi, the new railway line will connect Rohri in Sindh to Nokundi in Balochistan. This will allow the transport of nearly one million tons of copper each year.
Why the Railway is a Game-Changer
Currently, moving this amount of copper would require over 28,000 truckloads annually. The Balochistan railway project will significantly cut costs, reduce congestion, and improve efficiency.
The railway is also expected to support infrastructure growth in the province, creating jobs and opportunities for local communities.
Government Approval and Timeline
The approval came during an Economic Coordination Committee (ECC) meeting chaired by Finance Minister Muhammad Aurangzeb.
The ECC directed the railways and finance ministries to update progress on the Balochistan railway project by March 2026. This ensures close monitoring and timely implementation.
Economic Impact of the Reko Diq Project
Finance Minister Aurangzeb highlighted that the project shows the government’s strong commitment to economic growth. He added that the Reko Diq mine and railway project would help boost exports, create jobs, and uplift Balochistan’s economy.
The project could also improve Pakistan’s foreign exchange reserves and reduce dependence on imports.
Security and Political Challenges
Despite its potential, the Balochistan railway project faces challenges. The province has seen years of separatist insurgency, with militant groups targeting infrastructure and foreign investments.
Ensuring security for this project will be critical to its success and for attracting future global investors.
Looking Ahead
The $390 million Balochistan railway project marks a major step toward unlocking the province’s mineral wealth. If completed successfully, it could reshape Pakistan’s economy, improve connectivity, and bring lasting benefits to the people of Balochistan.
