Business Desk 
Sep 26, 2025
The government has approved a proposal to issue bonds to finance the development of a major railway track that will move copper and gold from the Reko Diq mines of Balochistan to Karachi Port for export.
Reportedly, the decision was made during a recent Economic Coordination Committee (ECC) meeting, where the Finance Ministry underscored the importance of the rail link from a strategic perspective.
This move marks a significant step as the rail link is essential for the commercial success of the Reko Diq copper-gold project, as it will transport minerals in bulk over 1,330 km.
The ECC was informed that Barrick Group and the Reko Diq Mining Company (RDMC) were lending $390 million in bridge financing for construction and upgrading of the ML-III section from Nokundi to Rohri, which cannot currently handle the freight load.
Moreover, the government of Pakistan will be the guarantor for this bridge financing, which is being provided at SOFR + 250 basis points for three years. Principal and interest will be repaid in a single bullet payment at the end of three years.
The committee directed the Railways Division to share the Rail Development Agreement with the Finance Division and resubmit if it is changed.
It also instructed the Finance Division to prepare a comprehensive execution, implementation, and refinancing plan by March 2026.
The ministry of railways confirmed that the Reko Diq project had been declared a qualified investment under the Promotion and Protection Act, 2022. Technical assessments by Vecturis and joint working groups of railways have finalised the project framework, including design, track access, and operations.
