Govt Clears Long-Pending Port Qasim Dispute To Enable Copper And Gold Exports

The Economic Coordination Committee has approved a revised dispute-resolution framework for the Port Qasim Authority and Pakistan International Bulk Terminal. This removes a major hurdle in the plan to export copper and gold concentrates from the Reko Diq project through Port Qasim. The development was reported by Business Recorder. The approval settles a long-running disagreement over arbitration rules between PQA and PIBT, a sticking point that had stalled the signing of a Supplemental Implementation Agreement needed to process and export minerals until Gwadar’s infrastructure is ready. ECC endorsed the amended agreement and accompanying side letter after both documents were revised in line with the Attorney General’s advice. The revised pact follows months of back-and-forth between the parties. PQA wanted disputes to be resolved under Pakistani law in Karachi, while PIBT and Reko Diq Mining Company argued for arbitration under the London Court of International Arbitration rules. The ECC has now approved a mechanism that accommodates both sides, paving the way for the construction of additional terminal facilities required for copper and gold exports. Before the breakthrough, PQA had already negotiated technical and financial proposals with PIBT for the new facilities, and the Ministry of Maritime Affairs had secured Cabinet-level exemption from competitive bidding under PPRA rules to allow the terminal to handle mineral exports on a non-exclusive basis. The exemption was granted given Reko Diq’s national importance and the absence of export infrastructure elsewhere. Reko Diq is considered one of the world’s largest untapped copper and gold deposits and is projected to generate billions of dollars in long-term benefits for Pakistan and Balochistan. In the short term, the mining company intends to route exports through Port Qasim because Gwadar’s facilities are not yet capable of handling bulk mineral shipments. With the arbitration dispute resolved and the ECC approving the revised SIA and side letter, the Ministry of Maritime Affairs will now proceed with finalising the agreement, clearing the way for PIBT to build the required export infrastructure at its existing terminal.