Amid the deteriorating law and order situation in Balochistan, the government has approved funds for the security of the multibillion-dollar Reko Diq gold and copper project.
The funds are intended to ensure the smooth operation of the Reko Diq project.
In a recent meeting, the Economic Coordination Committee (ECC) approved Rs1.79 billion funds for the security of the Reko Diq project.
The Ministry of Interior and Narcotics Control stated that the Frontier Corps Balochistan (South), a federal civil armed force, had been involved in border control, internal security, and maintaining law and order within its jurisdiction. Additionally, the force was tasked with apprehending illegal immigrants and carrying out counter-terrorism operations against miscreants and anti-state elements.
A summary was submitted to the ECC through the Finance Division on January 14, 2025, seeking approval for a technical supplementary grant (TSC) of Rs1.792 billion to cover security expenses for the Reko Diq project.
This request was based on the Security Services Framework Agreement (SSFA) between Reko Diq Mining Company (RDMC) and the Government of Pakistan, along with the MoU signed between RDMC and Frontier Corps Balochistan (South).
The Finance Division approved an allocation of only Rs286.987 million. However, during its meeting on February 3, 2025, the ECC deferred the summary and instructed the Interior Division, Finance Division, Petroleum Division, and Frontier Corps Balochistan (South) to reconcile the actual amount needed for the technical supplementary grant. The committee also emphasized ensuring transparency in expenditures before resubmitting the case.
In response to this directive, a meeting was convened on February 6, 2025, under the chairmanship of the interior secretary at the Ministry of Interior. During the discussion, the Finance Division's representative agreed in principle to support the request, provided it was clarified that the payment received from RDMC under the "support allowance" was not meant for the salaries or allowances of Frontier Corps personnel.
The Ministry of Interior and Narcotics Control further stated that Headquarters Frontier Corps Balochistan (South), Turbat, had clarified the issue. According to the Security Services Framework Agreement (SSFA) and the MoU signed between the Government of Pakistan, Frontier Corps, and RDMC, the Licensee (RDMC) provided financial support to the Frontier Corps under the term "support allowance" to cover specific costs and expenses that would otherwise be incurred in fulfilling the mission.
The recurring charges paid by RDMC do not cover the salaries of Frontier Corps personnel deployed for the security of the Reko Diq project.
The approved funds will be disbursed through a TSC into a designated DDO cost centre named "Reko Diq Project Frontier Corps Balochistan (South)".
All recurring and non-recurring expenses for project security will be managed through this dedicated cost centre. The existing budget of Headquarters Frontier Corps Balochistan (South) will not be utilized for expenditures related to Reko Diq project security.
The Finance Division was requested to approve a TSC of Rs1.792 billion against the payment received from RDMC to ensure the smooth execution of the Reko Diq project. The Finance Division endorsed the proposal for submission to the ECC.
The Ministry of Interior and Narcotics Control requested the ECC to approve the TSC of Rs1.792 billion, sourced from the payment received from RDMC for security charges. This approval is essential to ensure the smooth execution of the Reko Diq project while maintaining the security of foreign personnel. The funds, allocated under Demand No062 for the Combined Civil Armed Forces, will support Frontier Corps Balochistan (South) in meeting its operational and security-related needs.
The ECC reviewed the summary submitted by the Ministry of Interior and Narcotics Control for the approval of TSC of Rs1.792 billion to cover security charges for the Reko Diq project. After consideration, the proposal was approved.
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