ISLAMABAD – Pakistan has revised the cost of the first phase of the Reko Diq copper-gold mining project to $7.7 billion, reflecting a 79% increase from initial estimates, as the government approved key financial and infrastructure measures to fast-track the project.
Pakistan on Thursday revised upward the cost of the first phase of the Reko Diq copper and gold mines project for the second time in six months. The cost has now jumped 79% to $7.7 billion from the initial estimate due to higher cost of loans being taken for the project and to… pic.twitter.com/FQk2XBwtnf
— The Express Tribune (@etribune) September 19, 2025
The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, cleared enhanced project financing, sovereign guarantees, and agreements essential for implementation. A major decision includes $390 million in bridge financing for an 880–1,350 km rail link from Balochistan to Karachi, enabling large-scale mineral transport to global markets.
According to officials, the cost revision is due to higher loan expenses, inflationary pressures, and pre-2025 operating outlays. Debt commitments have been raised from $3 billion to $3.5 billion, while shareholder contributions also increase. Despite these adjustments, the government emphasized its commitment to complete Phase-I on schedule by 2029, with initial production targeted at 200,000 tonnes of copper annually.
The project is jointly owned by Barrick Gold (50%), the Balochistan government (25%), and federal SOEs including OGDCL, PPL, and GHPL (25%). Its estimated net cash flow of $70 billion over 37 years could reshape Pakistan’s foreign exchange profile and catalyze Balochistan’s socio-economic uplift.
The ECC stressed the rail link’s strategic importance, as it connects Reko Diq with Karachi seaport, strengthening Pakistan’s export logistics. Petroleum Minister Ali Pervaiz Malik noted the importance of monitoring repayment of the $390 million bridge loan, while Finance Minister Aurangzeb termed the project a “transformative driver for both national and provincial development.”
Seen as one of the world’s largest untapped copper-gold reserves, Reko Diq is not just an economic project but also a strategic national asset, positioning Pakistan as a future hub in global mineral supply chains.
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