The Economic Coordination Committee (ECC) of the cabinet on Sunday considered and approved two important agenda items related to the Reko Diq project, paving the way for its early start.
The meeting of the Economic Coordination Committee was presided over by Finance Minister Ishaq Dar.
The Ministry of Energy (Petroleum Division) submitted a summary on the accrued interest with respect to the amount held in an escrow account in connection with the Reko Diq Project dispute settlement. It was presented that the federal government and government of Balochistan entered into an out-of-court dispute settlement with Tethyan Copper Company Pvt Limited, a consortium of Barrick Gold Corporation of Canada and Antofagasta PLC of Chile, in respect of Reko Diq Copper-Gold Project in Balochistan.
As per settlement terms, the federal government has to clear liabilities to Antofagasta PLC. In light of the terms of the agreed settlement, the ECC allowed Finance Division to direct Government Holdings (Private) Limited (GHPL), Oil & Gas Development Company (OGDCL), and Pakistan Petroleum Limited (PPL) to deposit the aggregate amount of interest to the sum of $22.71 million in the escrow account from March 31, 2022, to December 15, 2022.
The ECC also allowed Finance Division to arrange the interest payable for the Balochistan government’s share of $8.51 million from the loan of Rs. 65 billion already raised by the GHPL with the federal government guarantee. Further, the ECC allowed the concerned divisions of the federal government and the state-owned enterprises (SOEs) to act in such a manner to ensure that the deposited amount along with interest deposited by the SOEs in the escrow account to form part of the consideration for share purchase of Reko Diq Mining Company Limited.
The ECC also considered and approved a proposal of the Finance Division on the funding plan of the federal government for the share of the Balochistan government in the Reko Diq Project. As per the proposal, an overall funding commitment of $717 million over the period of six years by the federal government in respect of the Balochistan government SPV Project Capital Commitment will be provided by the government.
Federal Minister for Power Khurram Dastgir, Federal Minister for Commerce Syed Naveed Qamar, Minister of State for Petroleum Musadik Malik, Minister of State for Finance and Revenue Dr. Ayesha Ghous Pasha, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, Chairman FBR and other senior officers attended the meeting.
