Federal government to pay Balochistan’s 15% share for Reko Diq Phase-II

Federal government to pay Balochistan’s 15% share for Reko Diq Phase-II as the decision was taken after key discussions between officials.

The federal government has agreed to finance Balochistan’s 15% equity share in the second phase of the Reko Diq project following discussions between key officials, securing funding for the project’s continuation.

The meeting in Quetta addressed several issues including Balochistan’s share, tax exemptions, and other concerns related to the project.

Proposals regarding the Reko Diq project had recently been approved by the Economic Coordination Committee (ECC), and negotiations with stakeholders are underway. The federal government assured the provincial government that financing for Phase-II will proceed as agreed.

A delegation from Balochistan proposed a one-time amnesty for boat registration, which the federal government agreed to facilitate, including providing a list of boats and offering tax exemptions after approval.

Illegal fishing by large trawlers from Sindh in Balochistan’s waters was highlighted as a major issue, with an estimated Rs200 billion lost annually. Federal agencies’ efforts to regulate the sector have not been effective.

The Prime Minister’s Office will coordinate consultations among federal agencies to create a more effective enforcement mechanism to address illegal fishing.

To help fully operationalize Gwadar Port, the provincial government proposed diverting Afghan Transit Trade to Gwadar, with the Ministry of Commerce tasked to develop a strategy and the Ministry of Planning to integrate this plan into Gwadar’s operational strategy.

Balochistan’s 60% share of net profits from Saindak Metal Limited has been withheld for two years, with Rs3 billion in arrears. The federal government will release these overdue payments and present a revised financial model for lease renewal.

The issue of Balochistan’s stake in the Balochistan Mineral Exploration Company (BMEC) was discussed, with the federal government agreeing to transfer its 10% share to the province for smoother decision-making.

Balochistan requested relaxation of rules to secure its 2.5% share in the Margand Block and Block 28(North), and necessary steps will be taken to ensure this.

The issue of Jandran Block payments was addressed, with the federal government acknowledging the expiration of the 2014 offer due to no response from Balochistan. The provincial government’s request for a one-time relaxation was considered, ensuring future transactions.