The Economic Coordination Committee (ECC) on Sunday approved two important agenda items related to the Reko Diq project, paving the way for its early start.
Finance Minister Ishaq Dar chaired the committee meeting virtually today.
The Ministry of Energy submitted a summary on 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 the provincial government of Balochistan entered into an out-of-court dispute settlement with Tethyan Copper Company Pvt Limited with respect to the Reko Diq Copper-Gold Project in the Chagai district of Balochistan.
On Friday, the federal government received a favourable opinion from the Supreme Court on the settlement agreement for the Reko Diq project, which was a condition for the finalisation of the settlement.
As per the settlement terms, the federal government has to clear liabilities to Antofagasta PLC, making a payment of $900 million plus accrued interest, which it has deposited in an escrow account.
In light of the terms of the agreed settlement, the ECC allowed the finance division to direct the Government Holdings Pvt Limited (GHPL), Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) to deposit the aggregate amount of interest to the sum of $22,718,173 in the escrow account from March 31, 2022, to December 15, 2022.
The ECC further allowed the Finance Division to arrange the interest payable for the Balochistan government's share amounting to $8,519,314 from the loan of Rs65 billion already raised by the GHPL with the federal government guarantee.
The ECC also considered and approved a proposal made by the finance division through a summary on the funding plan of the federal government for the share of the Balochistan government in the Reko Diq project.