ECC approves financing facility for Balochistan’s share in Reko-Diq dispute settlement

The Economic Coordination Committee (ECC) of the cabinet on Monday approved a summary regarding arrangement of finance facility for funding of Balochistan government’s share of obligation in Reko-Diq project dispute settlement.

According to a press release, the summary was forwarded by the Ministry of Energy (Petroleum Division) and the ECC has asked Finance Division to arrange payment of markup amount of Rs6.24 billion for the period of March 31, 2022 to December 30, 2022 to the NBP for the short term finance facility of Rs65 billion.

Barrick Gold starts work on Reko Diq project

The meeting was chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.

The ECC also considered a summary of the Ministry of National Health Services, Regulations and Coordination for maximum retail price of Remdesivir 100 mg injection and decided against increasing its price. It called for continuing the existing retail price of Rs1,892 per vial.

The ECC also deferred summaries of Ministry of National Health Services, Regulations and Coordination for fixation of MRP of 54 new drugs and increase in prices of 119 drugs.

Supreme Court declares new Reko Diq mine deal legal

Moreover, it also deferred a summary of Ministry of Aviation for engagement of International Finance Corporation as transaction advisor for the outsourcing of three airports.

Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud and Federal Minister for Commerce Syed Naveed Qamar also attended the meeting.

In December 2022, the Supreme Court of Pakistan declared the new Reko Diq mine deal legal and urged all provinces to amend their laws in accordance with the agreement.

An agreement in principle was reached between the government of Pakistan, the provincial government of Balochistan and Barrick Gold Corporation earlier this year for the reconstitution and restart of the project, which has been on hold since 2011.

The court also observed that the Balochistan Assembly was taken into confidence regarding the agreement. The order stated that the law did not allow agreements on national resources in violation of the Constitution

Barrick Gold Corporation assured that laws for wages would be abided by and most of the labour force would be recruited from Pakistan, the order said.

The court was further told that the project would be used for investing in social initiatives and skill development schemes would also be launched under it, the order added.