ISLAMABAD, November 15, 2026: The federal government has once again deferred approval of a $1 billion railway rehabilitation project crucial for transporting minerals from the Reko Diq mines, amid financing uncertainties and a possible shift in the export route from Karachi to Gwadar.
The Central Development Working Party (CDWP) has postponed approval of the Main Line-3 (ML-3) railway project for the third time in five months, according to Planning Ministry officials.
The project involves rehabilitating and upgrading the 996-kilometre railway track between Nok Kundi and Rohri at an estimated cost of Rs278 billion.
Officials said the existing track had exceeded its operational lifespan, with trains currently running at an average speed of just 30 kilometres per hour. Its rehabilitation is considered essential for transporting large quantities of minerals from Reko Diq by rail.
Federal Planning Minister Ahsan Iqbal said approval was delayed because the government had sought additional information about bridge financing arrangements with Barrick Gold.
The government has already approved a $390 million loan from the Reko Diq Mining Company at an annual interest rate of approximately six percent. The financing is intended to support the railway rehabilitation project on an interim basis.
However, uncertainty has emerged over the proposed mineral export route. The original plan envisaged transporting minerals through Nok Kundi, Quetta and Rohri to Karachi Port.
Authorities are now considering an alternative road corridor connecting Nok Kundi, Panjgur and Gwadar, potentially shifting mineral exports to Gwadar Port.
Officials said that if the export route changes, the government would need fresh assurances from Barrick Gold regarding its commitment to providing the previously agreed financing.
A Barrick Gold delegation recently met the planning minister and sought details of the proposed Nok Kundi-Gwadar road project.
Iqbal emphasised the need for closer coordination among the federal government, Balochistan government and mining companies to accelerate work on the proposed road corridor.
The latest postponement highlights the financing and infrastructure challenges facing Pakistan’s plans to develop mineral exports from Reko Diq.