ISLAMABAD ( The COW News Digital) The Economic Coordination Committee (ECC) of the federal cabinet has approved key financing agreements for the multi-billion-dollar Reko Diq mining project and sanctioned $390 million in bridge financing to lay a 1,350-kilometer-long railway track to support large-scale mineral transportation from Balochistan.
The high-level ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, reviewed and approved summaries submitted by the Petroleum Division regarding the project’s final financing structure and associated financial commitments. According to the Ministry of Finance, this approval marks a crucial step toward the commencement of work on one of Pakistan’s most significant mining projects.
The ECC granted approval on the proposed terms and directed that any substantial changes in the final agreements, following legal and financial vetting, must be brought back to the committee for further approval.
The committee also examined the Ministry of Railways’ proposal seeking approval for the Rail Development Agreement with Reko Diq Mining Company and the $390 million bridge financing arrangement. The railway project, once completed, will enable large-scale transportation of copper-gold concentrate from Balochistan to the ports, facilitating exports and boosting the country’s mineral economy.
The ECC instructed the Ministry of Railways to share copies of the agreements with the Ministry of Finance for detailed financial assessment and directed both ministries to submit an implementation progress report by March next year.
Finance Minister Muhammad Aurangzeb emphasized that the ECC’s approvals reflect the government’s commitment to fast-tracking this historic project. “The Reko Diq project has the potential to transform the economic landscape of Balochistan and generate significant long-term benefits for the people of Pakistan,” he said.
Experts view the ECC’s green light as a major milestone that could unlock billions of dollars in foreign direct investment and position Pakistan as a key player in the global copper and gold markets. The project has already attracted interest from major international investors and development banks, including a reported $6 billion investment pledge and $1 billion financing approval from global and Asian development institutions.
With these approvals, the government hopes to kickstart construction activities, strengthen Pakistan’s mining sector, and create thousands of jobs in the region.
