The Economic Coordination Committee (ECC) of the Cabinet has approved rail agreements for the Reko Diq copper-gold project. At the same time, the ECC directed the Ministry of Railways and the Finance Division to present a complete execution and refinancing plan by March 30, 2026.
Qualified Investment Status and Strategic Rail Corridor
According to the Railways Division, the Reko Diq Project now holds “qualified investment” status under the Foreign Investment (Promotion and Protection) Act, 2022. A dedicated 1,350 km rail corridor is essential to move copper-gold concentrate from Balochistan mines to export hubs. This link will ensure commercial viability by providing reliable bulk transport for large shipments.
Preferred Route via Port Qasim
Surveys conducted with the Reko Diq Mining Company (RDMC) highlighted Port Qasim as the preferred outlet. The corridor will connect ML-III and ML-I tracks. Joint working groups have shaped the project’s framework, covering train design, track access, and operational responsibilities.
Bridge Financing and Urgent ML-III Upgrade
To meet project deadlines, the ECC approved $390 million in bridge financing in mid-2025. The Prime Minister endorsed this package later the same year. Funds will upgrade the Nokundi–Rohri section of ML-III, which currently cannot handle the expected freight load. Financing is set at SOFR + 250 basis points with a three-year term. Repayment will be made in a single bullet payment, with the Government of Pakistan acting as guarantor.
Legal Clearances and Refinancing Structure
The Rail Development Agreement and Bridge Financing Agreement have already been vetted by the Law Ministry, the Attorney General’s Office, and the Ministry of Foreign Affairs. The ECC emphasised securitisation of project income, with 40% raised through bonds and the remainder covered by government resources.
Next Steps and ECC’s Directives
The ECC instructed the Finance Division to begin refinancing preparations in Q4 of FY26. Railways must also share the final agreement with Finance and resubmit the case if material changes occur. Officials added that the ECC wants fast implementation to ensure rail connectivity drives Reko Diq’s commercial success and expands Pakistan’s mineral export capacity.
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