Pakistan approves funds for new military operation, security for Reko Diq mining project

ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) approved funds for a new military operation and security charges for the Reko Diq mining project in southwestern Balochistan province on Thursday, signaling the government’s intention to conduct the operation despite protests from opposition parties.

Pakistan’s government announced in June that it would launch a new military operation titled “Operation Azm-e-Istehkam” or Resolve for Stability to root out militancy from the country. The decision was strongly rejected by the country’s major opposition parties, most of them based in the militancy-hit northwestern Khyber Pakhtunkhwa (KP) province bordering Afghanistan. Following protests, the government announced it would proceed with the operation only after building a consensus on the matter. 

However, the ECC’s decision to approve Rs20 billion [$71.7 million] on Thursday in the ECC meeting chaired by Finance Minister Muhammad Aurangzeb is being seen as a sign the government intends to launch the operation. 

“The ECC also considered and approved the following Technical Supplementary Grants,” a statement from the committee read. “Rs. 20 billion as a special allocation for Operation Azm-e-Istehkam during CFY 2024-25.”

The committee also approved Rs1951.995 million [$6.99 million] as security charges for the Frontier Corps Balochistan paramilitary force for the Reko Diq mining project. 

Located in the Chagai district, Reko Diq contains one of the biggest undeveloped copper and gold deposits in the world, with the potential to produce a large amount of these precious commodities for decades.

The project is owned 50 percent by Canada-based Barrick Gold Corporation, 25 percent by three federal state-owned enterprises, 15 percent by Balochistan on a fully funded basis, and 10 percent by Balochistan on a free carried basis, according to Barrick.

However, Pakistani authorities have struggled to maintain law and order in the restive southwestern province bordering Afghanistan and Iran, where ethnic Baloch separatist outfits have launched an armed insurgency for decades. 

Baloch militants demand independence from the state, which they accuse of exploiting the gas-and-mineral-rich Balochistan province and depriving its people of the resources. The state denies the allegations.