Islamabad: In a significant boost to the Reko Diq project, the federal government has agreed to finance Balochistan’s 15% paid equity share, ensuring that Phase-II of the project can move forward. The decision was reached following detailed discussions in Quetta between a delegation led by Petroleum Minister Ali Pervaiz Malik and a team headed by Balochistan Chief Minister Sarfraz Bugti.
The meeting focused on resolving a range of issues related to Balochistan’s stake in the project, including tax exemptions and other operational concerns. According to media reports, the Economic Coordination Committee (ECC) had recently approved several proposals pertaining to Reko Diq, which are now in the negotiation phase with various investors and stakeholders.
As part of the agreement, the federal government will cover the 15% paid equity share for Balochistan, a move that is expected to secure the necessary financing for the second phase of the project. The provincial cabinet is anticipated to give its consent to this arrangement shortly, thereby solidifying the partnership between the Centre and Balochistan.
In addition to the equity financing, the provincial delegation presented several demands aimed at enhancing the overall benefits for Balochistan. These demands included a one-time amnesty for the registration of approximately 6,000 boats, with plans for tax exemptions to be facilitated by the Federal Board of Revenue upon cabinet approval. The delegation also raised concerns over illegal fishing by large trawlers from Sindh in Balochistan’s territorial waters, which the provincial government estimates results in losses of around PKR 200 billion annually. The federal government has committed to coordinating with various agencies via the Prime Minister’s Office to address these issues and establish a robust enforcement mechanism.
Further discussions during the meeting covered proposals to fully operationalize Gwadar Port by potentially diverting Afghan transit trade to the port, as well as addressing financial arrears in projects like Saindak Metal Limited. The federal government also agreed to transfer its shareholding in the Balochistan Mineral Exploration Company (BMEC) to the provincial government to expedite decision-making processes, and to relax rules regarding Balochistan’s share in other mineral blocks.
The agreement to finance Balochistan’s 15% paid equity share represents a pivotal step in advancing the Reko Diq project and underscores the federal government’s commitment to strengthening economic partnerships with Balochistan. As both parties work toward finalizing the necessary approvals and addressing ancillary issues, the initiative is expected to play a key role in the region’s development and resource management.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
