The federal government has agreed to cover Balochistan’s 15% equity share for financing Phase-II of the Reko Diq project.This decision followed discussions between Federal Petroleum Minister Ali Pervaiz Malik and Balochistan Chief Minister Sarfraz Bugti in Quetta.
Key topics included Balochistan’s share in the project, tax exemptions, and other provincial concerns. The Economic Coordination Committee (ECC) previously approved proposals for the project, which are now under negotiation with stakeholders.
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Federal Minister Malik confirmed the central government would ensure financing for Phase-II under agreed-upon criteria. However, the provincial cabinet still needs to give final approval.
Other issues addressed during the meeting included the registration of 6,000 boats with tax exemptions facilitated by the Federal Board of Revenue (FBR). Additionally, illegal fishing by trawlers in Balochistan’s waters, causing Rs200 billion in annual losses, was discussed. The Prime Minister’s Office will coordinate consultations to enforce regulations effectively.
The meeting also emphasized fully operationalizing Gwadar Port. The Commerce Ministry is developing a strategy to redirect Afghan Transit Trade to Gwadar, and the Planning Ministry will integrate it into the port’s operational plans.
On another note, the federal government will release Balochistan’s overdue 60% share of Saindak Metal Limited’s profits, amounting to Rs3 billion. We will present a revised financial model to ensure continued provincial involvement.
Additionally, the federal government plans to transfer its 10% stake in the Balochistan Mineral Exploration Company (BMEC) to the provincial government to expedite decision-making. Discussions also encompassed Balochistan’s 2.5% shares in Margand Block and Block 28(North), with a mutual agreement for a relaxation of rules to maintain the province’s stakes.
For the Jandran Block, a prior federal offer made in 2014 expired due to no provincial response, but the federal government is now considering a one-time relaxation to uphold Balochistan’s share.
