Pakistan has approved a $7.7 billion financing and development package to support the Reko Diq Mining Company (RDMC) project, including critical railway infrastructure to facilitate mineral exports.
The agreement covers both railway development and financing arrangements, under which the government will extend bridge financing for three years. The loan will be provided at the Secured Overnight Financing Rate (SOFR) plus 250 basis points, repayable in a single bullet payment at maturity.
According to officials, the project framework was finalized after extensive studies by the Ministry of Railways (MoR), technical assessments by global consultant M/s Vecturis, and input from joint working groups covering legal, technical, and operational aspects. RDMC has chosen the Port Qasim route, which will connect to the country’s Main Line-I (ML-I) and Main Line-III (ML-III) railway networks.
The existing Nokundi–Rohri stretch of ML-III is considered inadequate for the expected surge in freight and has been prioritized for urgent upgradation. The MoR has been directed to coordinate with the finance ministry, share finalized agreements for appraisal, and report progress to the Economic Coordination Committee (ECC) by March 2026.
The financing arrangement carries the backing of key institutions, including the ministries of finance, law, and foreign affairs, as well as the attorney general’s office. Officials noted that Prime Minister had already approved the financing blueprint in August, following recommendations earlier made by the Economic Affairs Division in June.
The Reko Diq project, one of the world’s largest untapped copper and gold reserves, is seen as a strategic driver for Pakistan’s long-term economic growth. By aligning mining development with modern railway infrastructure, the initiative aims to streamline logistics, enhance exports, and attract foreign investment into the country’s resource sector.
