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Reko Diq project: ECC approves Rs65 billion for Balochistan Govt obligation

ISLAMABAD: The Economic Coordination Committee (ECC) has delayed decisions on raising drug prices and outsourcing three airports, but it has approved a Rs 65 billion finance facility to help the Balochistan government fulfill its responsibilities in resolving the Reko Diq dispute.

In this case, the International Centre for Settlement of Investment Disputes ordered the Pakistani government to pay Tethyan Copper Company Pty. Limited, Australia (TCCA) $4.087 billion in compensation, with the total liability amounting to approximately $6.5 billion. Following extensive negotiations, a settlement framework was established that included certain terms, including the acquisition of TCCA’s shares in the Reko-Diq Project by federal and Balochistan government-owned businesses.

The agreement was approved by the government, and the ECC authorized a Rs 65 billion finance facility to cover the Balochistan government’s share of the liability. The Finance Division approved the terms and conditions of the financing facility, which were provided by the National Bank of Pakistan, and repayment will be made directly by the government of Pakistan through budget allocation.

The ECC has also approved a markup payment of Rs 6,238,358,879 (Rupees six billion two hundred thirty-eight million three hundred fifty-eight thousand eight hundred seventy-nine only) from the Rs 180.000 billion block allocation for the period beginning March 31, 2022, and ending December 30, 2022.

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