Islamabad: The Economic Coordination Committee (ECC) of the Cabinet has directed the Ministry of Railways and the Finance Division to prepare a comprehensive execution and implementation plan for the Reko Diq rail agreements, including a refinancing strategy, by March 2026.
According to official sources, the Ministry of Railways informed the ECC that the Reko Diq Project has been declared a “qualified investment” under the Foreign Investment (Promotion and Protection) Act 2022. Rail connectivity is considered critical to the project’s commercial viability, as it would allow copper-gold concentrate from Balochistan to be transported over 1,350 km to Karachi Port for export.
To accommodate the expected freight movement, the Main Line-III (ML-3) section from Nokundi to Rohri requires urgent upgradation. The Railways Division has entered into a Rail Development Agreement and a Bridge Financing Agreement with the Reko Diq Mining Company (RDMC) to support this effort. Under the arrangement, RDMC and its partner, Barrick Group, are providing bridge financing of USD 390 million for a three-year period at SOFR + 250 basis points, with repayment due in a single bullet payment at maturity. The Government of Pakistan will act as guarantor.
The ECC was informed that project income would need to be securitized, with around 40 percent of refinancing to be raised through bonds, while the remainder would be provided by the government. The total project duration is estimated at 37 years.
While noting progress, the Finance Division pointed out that the Railways Division had not shared the Rail Development Agreement for review. The ECC instructed Railways to share the document with the Finance Division and to resubmit the case if any material changes were required.
The committee further directed both Railways and Finance to finalize a full implementation roadmap, including details of refinancing arrangements, and present it to the ECC by March 2026.
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