By Staff Reporter
ISLAMABAD: The government on Thursday approved $390 million to fund a 1,350-km railway network for the Reko Diq mining project in Balochistan, a key step to develop one of the world’s largest untapped copper-gold deposits, the Finance Division said.
The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the cabinet, chaired by Finance Minister Muhammad Aurangzeb.
The Ministry of Railways submitted a proposal for rail development and bridge financing agreements with the Reko Diq Mining Company to transport large volumes of export material from the Balochistan mines.
“The ECC approved the proposal and directed the Ministry of Railways to share both agreement documents with the Finance Division for appraisal,” the Finance Division statement said, adding that the ministries of railways and finance must provide an update on project implementation by March 2026.
Operated by Canada’s Barrick Gold, the Reko Diq project is poised to reshape Pakistan’s mining sector and boost Balochistan’s economy. A March feasibility study valued the site’s copper and gold reserves at over $60 billion at current prices, prompting state-owned entities, Oil and Gas Development Company, Pakistan Petroleum Ltd, and Government Holdings (Pvt) Ltd, to commit $1.9 billion to the mining company.
“The ECC’s approvals signify the government’s firm commitment to moving ahead with this landmark project, which has the potential to transform the economic landscape of Balochistan and generate far-reaching benefits for the people of Pakistan,” Aurangzeb said. “The Reko Diq project will not only unlock one of the world’s largest undeveloped copper-gold deposits but also catalyse job creation, infrastructure development, and long-term socio-economic uplift across the region.”
The ECC also reviewed a petroleum ministry proposal on agreements and financial commitments for the project, approving the final terms. Any significant changes to the final agreements, as assessed by the project’s legal and financial consultants and certified by the mining company, must return to the ECC for approval, the statement said.
In August, Reuters reported that the Asian Development Bank would provide $410 million in financing to support Reko Diq’s development, strengthening the project’s funding structure.
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