ECC okays $500m hike in Reko Diq cost, development plan
1. Valuation of Reko Diq jacked up to $6.7 billion from previous $6.2 billion
ECC Approves Revised Cost and Development Plan for Reko Diq, Raising Valuation to $6.7 Billion
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved an upward revision in the cost and development plan of the Reko Diq project, increasing its valuation from $6.2 billion to $6.7 billion.
The $500 million increase follows ongoing negotiations with the Kingdom of Saudi Arabia (KSA) regarding potential stakes in this multibillion-dollar venture. While Saudi Arabia has expressed interest, no final agreement has been reached yet. However, the revised valuation could facilitate the federal government’s stake sale to KSA within the ongoing financial year (2024-25).
The ECC's approval includes key modifications to the project's development plan and financial commitments, driven by inflation and an expanded project scope. Despite the Ministry of Finance releasing an official statement, no specific details were shared regarding the valuation increase.
The ECC meeting, chaired virtually by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb—who is currently attending the Boao Forum for Asia 2025 in China—was attended by Minister for Petroleum Ali Parvez Malik, Minister for Commerce Jam Kamal Khan, Minister for the Board of Investment Qaiser Ahmed Sheikh, as well as senior officials from relevant ministries and divisions.
During the meeting, the ECC reviewed a summary from the Petroleum Division outlining changes to the Reko Diq development plan, financial commitments, and project financing considerations. The revisions account for inflation, increased project capacity, changes in the energy mix, alternative water supply solutions, and upgraded processing plants and machinery.
Recognizing the factors contributing to the cost escalation, the ECC approved the proposed adjustments and directed the ministries of petroleum and finance to maintain close coordination to ensure timely implementation. The committee reaffirmed its full support for Reko Diq, calling it a project of immense national importance.
Additionally, the ECC approved a technical supplementary grant of Rs 200 million for the Ministry of Interprovincial Coordination to develop the Pakistan Sports Board (PSB) Coaching Centre in Skardu. However, it emphasized the need for the ministry to ensure that, once completed, the facility remains operational and serves its intended purpose—providing sports amenities to the local population and functioning as a high-altitude training center for athletes competing at national and international levels.
