• JUI-F, BNP-M expressed reservation over the agreement
• They allies boycotted cabinet meeting until amendments are implemented
• The cabinet took decisions regarding the Reko Diq agreement

ISLAMABAD: Two main coalition parties of the federal government have expressed reservations over the multi-billion Reko Diq agreement, Bol News reported citing sources.

Prime Minister Shehbaz Sharif chaired a meeting of the federal cabinet which approved decisions regarding the Reko Diq agreement.

The Jamiat Ulema-e-Islam (JUI-F) and Balochistan National Party-Mengal (BNP-M) objected to the agreement. The ministers from the allied parties protested  and said they were not taken into confidence over the deal.

The party leaders walked out of the cabinet in protest, sources revealed. The cabinet members assured that their reservations are valid are will be addressed. They said amendments will be made in the agreement soon.

However, the allied parties said they will boycott the cabinet meetings until their reservations are incorporated. The JUI-F and BNP-M ministers left the Prime Minister’s House.

Meanwhile, the federal cabinet took several decisions to clear the way for the operation of the new Reko Diq agreement after it was cleared by the Supreme Court.

The cabinet approved the clearance of liabilities of Chilean firm Antofagasta which has pulled out of the agreement. The cabinet approved $22.7 million in interest payments to clear the due. The cabinet gave emergency approval through a circulation summary.

According to reports, the Finance Ministry has been directed to arrange $8.5 million in interest payable for Balochistan’s share. The main shareholder Govt Holdings Pvt Ltd (GHPL) has already raised Rs65 billion with sovereign guarantee.

Earlier, the Economic Coordination Committee (ECC) of the federal cabinet approved a payment of more than $900 million to the Chilean firm Antofagasta over six years to exit the Reko Diq project. The committee approved $1.91 billion shareholder financing by state-owned enterprises (SOEs) to take mining project forward.

The Supreme Court o had ruled that new deal on the Reko Diq gold and copper mining project in Balochistan is legal. The Senate also passed the Foreign Investment (Amendment) Act, 2022 to protect large-scale investment which favours the agreement.

Reko Diq is one of the world’s largest undeveloped copper and gold mines located in Balochistan. The project is being restarted on hold since 2011.

Also Read

Senate passes Foreign Investment Bill to protect Reko Diq deal

Senate passed the Foreign Investment (Promotion and Protection) Bill The bill aims...