ISLAMABAD (Kashmir English): The Economic Coordination Committee (ECC) has approved the agreements related to the financing of the Reko Diq project.
A $390 million Birch financing agreement for laying a 1,350-kilometer railway track was also approved.
Finance Minister Muhammad Aurangzeb chaired the meeting of the ECC of the federal cabinet.
The ECC considered the summary presented by the Petroleum Division, which sought approval of the final agreements and financial commitments related to the financing of the Reko Diq project.
According to the Finance Ministry, this has paved the way for starting work on the Reko Diq project.
The ECC approved the proposed terms and conditions and directed that if there is any major change in the final form of the agreements after the verification of legal and financial experts at any stage, it should be presented again before the ECC.
The ECC also considered the summary of the Ministry of Railways seeking approval for a Rail Development Agreement with Reko Diq Mining Company and a Bridge Financing Agreement worth $390 million to lay a 1,350-kilometer railway line for large-scale transportation of export goods from Balochistan’s mines.
While approving the proposal, the ECC directed the Ministry of Railways to share copies of both agreements with the Ministry of Finance for their analysis.
Further, the Ministry of Railways and the Ministry of Finance were directed to submit a report on the implementation of the project to the ECC by March next year.
Federal Finance Minister Muhammad Aurangzeb said that the approval given by the ECC reflects the government’s determination to move forward with this historic project that has the potential to transform the economic landscape of Balochistan and generate wider benefits for the people of Pakistan.
