Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project
ISLAMABAD: Pakistan plans to upgrade its railway infrastructure and extend the network to Reko Diq, a massive copper and gold mining project in southwestern Balochistan province, as Prime Minister Shehbaz Sharif on Tuesday instructed officials to set up an inter-ministerial committee for the project.
The move aims to support future cargo and transport needs, particularly as Reko Diq, one of the world's largest undeveloped copper-gold deposits, is set to begin production within three years.
The mine is being developed by Barrick Gold, which holds a 50 percent stake, with the remaining share held jointly by Pakistan's federal and provincial governments. The company has projected the project will generate up to $74 billion in free cash flow over its expected 37-year lifespan.
'The Prime Minister directed that Reko Diq be connected to the railway network by 2028,' Sharif's office said in a statement circulated after the meeting. 'The Prime Minister instructed the formation of an inter-ministerial committee to explore financing options for the upgrade and expansion of the railway system.'
'The committee will present concrete proposals regarding the financing required for the development of Pakistan Railways and its extension to Reko Diq,' it added.
Calling railways a 'backbone' of Pakistan's economy and communications network, the prime minister said it was an affordable, fast and environmentally friendly mode of transport.
He added extending rail connectivity to Reko Diq would boost the mining and minerals sector in Balochistan and create new employment opportunities for residents in the province.
The mineral-rich but underdeveloped province of Balochistan is vital to Beijing's $65 billion China-Pakistan Economic Corridor (CPEC), the flagship Pakistan arm of President Xi Jinping's Belt and Road Initiative.
However, while the province is viewed as vital for Pakistan's economic future, it remains marred by separatist violence, posing serious challenges to the implementation of large-scale infrastructure and mining projects.
The railway network, despite being a key mode of transport for the province's widely dispersed population, has also come under threat from militant attacks.
Earlier this year, armed separatists took a passenger train hostage in Balochistan, triggering a military rescue operation in which security forces said all the militants were killed.
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