8 hours ago
- Business
- Business Recorder
PM for linking Reko Diq project to Railways network
ISLAMABAD: In a bold move aimed at bolstering economic development and enhancing cargo transport infrastructure, Prime Minister Shehbaz Sharif on Tuesday directed that Reko Diq mining project in Balochistan be connected to Pakistan Railways network by 2028.
The announcement was made as the prime minister chaired a high-level meeting attended by senior cabinet members, including Deputy Prime Minister and Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, and other federal ministers.
The Reko Diq project, which has been described as one of the largest undeveloped copper and gold deposits in the world, is expected to generate up to $90 billion in operating cash flow over its lifetime.
Canadian mining firm Barrick Gold holds a 50 per cent stake, with the remaining ownership shared between the federal and Balochistan governments.
'This will develop the mines and minerals sector of Balochistan and create new employment opportunities for the local population,' Sharif said.
He described Pakistan Railways as the backbone of the country's economy and communication, highlighting its affordability, speed, and environmental benefits.
The proposed rail link is expected to involve upgrades to key sections of the network, including the Main Line-1 (ML-1) and Main Line-3 (ML-3), to accommodate future freight traffic from the mine.
An inter-ministerial committee has been tasked with developing a financing strategy and implementation plan for the rail project.
It will also oversee infrastructure development to ensure the network is capable of handling large-scale mineral transport once the mine becomes operational.
International interest in Reko Diq has been growing.
In January, Saudi Arabia's Manara Minerals expressed plans to acquire a 10-20 per cent stake in the venture, potentially investing between $500 million and $1 billion.
In April, stakeholders approved a revised feasibility study and granted initial approval for Phase-1 development, contingent on securing up to $3 billion in funding.
The prime minister's directive signals a renewed focus on leveraging the country's mineral resources to drive economic growth, particularly in underdeveloped regions such as Balochistan.
Copyright Business Recorder, 2025
