ISLAMABAD (September 29, 2025): The Economic Coordination Committee (ECC) of the Cabinet has placed the multibillion-dollar Reko Diq project under closer review, directing the Ministry of Railways and the Finance Division to prepare a comprehensive execution and implementation plan of rail agreements by March 30, 2026. The move reflects Pakistan’s determination to secure efficient transport and financing solutions for the country’s largest copper-gold mining venture.
Major progress in the $10B+ Reko Diq Copper & Gold Mine project!
The agreement to lay 1,350 km of railway track will be signed on Oct 2, along with a $490M bridge financing deal with Reko Diq Mining Company.
Phase 1 will cost $7B and Phase 2 $3.3B.#SamaaTV #Pakistan #Mining pic.twitter.com/GKQNSZ3f6c
— SAMAA TV (@SAMAATV) September 27, 2025
Key Highlights
- ECC demands detailed execution and refinancing plan for Reko Diq rail agreements by March 30, 2026.
- 1350 km rail link vital for transporting copper-gold concentrate from Balochistan to international markets.
- USD 390 million bridge financing approved for upgrading Main Line-III (Nokundi–Rohri) to handle heavy freight.
- Financing tenure: 3 years at SOFR + 250bps, with Pakistan government as guarantor.
- Barrick Group and Reko Diq Mining Company (RDMC) providing initial financing; long-term plan includes bond flotation.
- ECC orders Railways to share the Rail Development Agreement with Finance Division for review.
- Project duration set at 37 years, with 40% refinancing from securitization and the rest from government support.
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National Project with Strategic Importance
Officials confirmed that the rail connectivity is critical for the commercial viability of the Reko Diq project, declared a qualified investment under the Foreign Investment (Promotion and Protection) Act 2022. The upgraded ML-III route will connect with Port Qasim via ML-I, providing a reliable bulk transport solution for exporting concentrate.
The ECC stressed that a clear refinancing roadmap is essential, with securitization of project income and government-backed guarantees to attract long-term investors. The Ministry of Railways briefed that technical assessments and legal frameworks were already vetted by experts, including inputs from the Attorney General’s office, Law Ministry, and Foreign Affairs.
Financial Oversight and Next Steps
The USD 390 million bridge financing arrangement, first recommended in June 2025 and approved by the Prime Minister in August, is seen as a stepping stone towards securing permanent funding. Both agreements — the Rail Development Agreement and Bridge Financing Agreement — have been finalized and legally vetted.
During deliberations, the Finance Division emphasized the need for full transparency and directed that all agreements be shared for financial scrutiny. The ECC reiterated that the execution and refinancing plans must be finalized by March 2026 to ensure smooth progress of this landmark project.
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