The cabinet’s Economic Coordination Committee (ECC) approved two essential agenda items related to the Reko Diq project, including an agreement with the Barrick Gold Company, paving the way for the megaproject’s early start, according to the finance ministry.
According to the media sources, Finance Minister Ishaq Dar presided over the ECC meeting via video link. During the meeting, the energy ministry presented a summary of accrued interest on the amount held in an escrow account in connection with the Reko Diq project dispute settlement.
The meeting was informed that the federal and Balochistan provincial governments had reached an out-of-court settlement with the Tethyan Copper Company regarding the Reko Diq Copper-Gold Project in the Chagai district of Balochistan.
According to the out-of-court settlement terms, the federal government would clear Antofagasta Plc’s liabilities by paying $900 million plus interest. The ECC authorised the finance division to direct the deposit of $22.7 million in the escrow account by the Oil and Gas Development Company Limited (OGDCL), the Government Holdings (Private) Limited (GHPL), and the Pakistan Petroleum Limited (PPL).
The ECC also authorised the finance division to arrange the interest payable for the government of Balochistan’s share of Rs65 billion already raised by the GHPL with the government of Pakistan’s guarantee.
In addition, the ECC also considered and approved a proposal from the finance division in the form of a summary of the government of Pakistan’s funding plan for Balochistan’s share of the Reko Diq project. The approval of these agenda items has now paved the way for the project’s early implementation.
The government received a favourable opinion from the Supreme Court on the settlement agreement for the Reko Diq project on Friday, which was required for the settlement to be finalised. Last week, the Sindh Assembly and the Balochistan Assembly passed resolutions supporting the project.