In what is being considered as a breakthrough for Pakistan’s mining sector, the government has cleared a revised financing package of $7.723 billion for the first phase of the Reko Diq Copper-Gold Project.
The approval, given on Thursday by the Economic Coordination Committee (ECC) chaired by Finance Minister Muhammad Aurangzeb, sets the stage for the formal signing of agreements within two weeks.
The project is located in Balochistan’s Chagai district, is regarded as one of the largest undeveloped copper-gold deposits in the world. Phase-I alone will cost almost 14 percent more than earlier estimates, rising from $6.76 billion to $7.72 billion, largely due to higher financing costs and contingency provisions.
Under the new structure, debt financing has been raised to $3.5 billion, while shareholders’ financial dedications are also being adjusted. Importantly, about 35 percent of the cost will be borne in rupees, reducing Pakistan’s foreign exchange burden.
Read more: Reko Diq project to yield 31 million tonnes of gold and copper worth over $181 billion
State-owned companies, including OGDCL and PPL, along with the Balochistan government, will share funding responsibilities. The federal government has assured it will arrange any shortfall through the State Bank.
If all goes according to plan, the mine will deliver its first copper-gold concentrate by the end of 2028. Over its estimated 37-year life, Reko Diq is projected to generate a staggering $90 billion in operating cash flows, with around $53 billion staying in Pakistan.
Revenues are expected to be split between the federal government, Balochistan, and state-owned enterprises, offering a major boost to national and provincial finances.
But the project is not just about revenue. Local communities stand to benefit from new schools, safe drinking water schemes, skills training, and thousands of jobs—7,500 during peak construction and 3,500 permanent roles once operations start. Training programmes for Baloch graduates are already underway, signaling a focus on local capacity building.
To make the project commercially viable, the ECC also ratified $390 million in bridge financing for a 1,350km railway line connecting Balochistan to Port Qasim, ensuring efficient ore transport for export.
For Pakistan, the approval depicts more than just a mining deal—it’s a long-term investment in jobs, revenue and regional development, with the capacity to reshape Balochistan’s economic future.