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ECC Approves Final Terms and Rail Financing to Launch Reko Diq

The decision locks in a roughly $7.7 billion Phase I budget with increased debt under ECC oversight.

Overview

  • Pakistan’s Economic Coordination Committee endorsed definitive agreements and financial commitments that clear the project’s formal start.
  • The committee raised the Phase I cost to about $7.7 billion and increased the debt component to $3.5 billion, adding interest costs and higher shareholder contributions, according to officials.
  • The ECC approved $390 million in bridge financing for a rail link to move ore to Karachi, described as a 1,350 km route in official releases, with one report citing 880 km.
  • Ministries must submit agreement documents to the Finance Division for appraisal, bring any material execution changes back to the ECC, and provide an implementation update by March 2026.
  • Local reporting of technical documents indicates production could begin by end‑2028 with Phase I completion in 2029.