ISLAMABAD: Pakistan’s top economic body, the Economic Coordination Committee, approved a $390 million bridge financing package to construct a 1,350-kilometer railway track that will carry mineral exports from Balochistan, the Finance Division said.
The Reko Diq mine holds one of the world’s biggest untapped copper and gold deposits. Officials estimate the project will generate $90 billion over 37 years. After years of legal disputes and political deadlock, Pakistan revived the project through a 2022 settlement with Canada’s Barrick Gold. The Canadian miner owns 50 percent of the venture, while the federal and Balochistan governments jointly hold the remainder.
Railways Minister Hanif Abbasi told Arab News that the Reko Diq Mining Company (RDMC)—a joint venture of Barrick Gold and Pakistan—had agreed to provide the $390 million financing for a track from Rohri in Sindh to Nokundi in Balochistan. He said the line would transport one million tons of copper annually, eliminating the need for more than 28,000 truckloads a year.
Finance Minister Muhammad Aurangzeb chaired Thursday’s meeting of the Economic Coordination Committee (ECC), which considered multiple proposals related to Reko Diq.
“The ECC approved a rail development and bridge financing agreement with RDMC for $390 million to lay a 1,350 km railway track to transport large volumes of export material from Balochistan,” the Finance Division said.
The committee directed the Railways Ministry to share the agreement with the Finance Division for appraisal and to provide a progress update by March 2026. Aurangzeb said the approvals showed the government’s “firm commitment” to advance the project, which he described as transformative for Balochistan’s economy.
“The Reko Diq project will not only unlock one of the world’s largest undeveloped copper-gold deposits but also create jobs, build infrastructure, and deliver long-term socio-economic uplift across the region,” Aurangzeb said.
Islamabad has promoted Reko Diq as a potential driver of growth and foreign exchange earnings as it struggles to recover from a prolonged macroeconomic crisis that drained reserves and triggered a balance of payments crunch.
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But officials acknowledge that the mine’s location highlights persistent risks. Balochistan, bordering Iran and Afghanistan, has endured a decades-long separatist insurgency. Armed groups have repeatedly attacked government facilities, the military, and foreign-backed projects, including Chinese investments under the China-Pakistan Economic Corridor. Insurgents demand greater control of the province’s resources and independence, while the state labels such violence as terrorism threatening national stability.
