ISLAMABAD: The Public Procurement Regulatory Authority (PPRA) has advised the Federal Cabinet to approve the Pakistan International Bulk Terminal (PIBT) at Port Qasim as the designated handler for Reko Diq’s copper and gold shipments—without initiating a competitive bidding process.
This recommendation was made after extensive discussions during two back-to-back meetings of the PPRA Board, attended by both Board members and special invitees, according to sources familiar with the matter.
On April 11, 2025, PPRA Managing Director Hasanat Ahmed Qureshi briefed the Board—chaired by Finance Secretary and PPRA Board Chairman Imdad Ullah Bosal—that the matter titled “Exemption under Section 21 of the PPRA Ordinance, 2002 – Utilization of PIBT at Port Qasim by Reko Diq Mining Company for the Reko Diq Project” had been brought up during the earlier Board session on April 10, 2025.
At that time, the Board had postponed its decision due to lack of clarity and directed the Ministry of Maritime Affairs (MoMA) to submit a revised proposal addressing several key points:
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Confirmation that the proposal qualifies as public procurement.
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Justification for seeking exemption from competitive bidding.
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Identification of the specific PPRA rule from which exemption is sought.
In response, Secretary MoMA Syed Zafar Ali Shah clarified that the Port Qasim Authority (PQA), a statutory organization established under the PQA Act of 1973, qualifies as a “procuring agency” under Rule 2(1) of the PPRA Ordinance, 2002, making it subject to the Authority’s regulations.
Rear Admiral (Retd.) Syed Moazzam Ilyas, Chairman of PQA, noted that the definition of public procurement under the PPRA Ordinance includes any acquisition of goods, services, or construction works funded wholly or partially by public funds—unless explicitly excluded by the federal government.
He also pointed out that the PIBT concession, originally awarded through a competitive bidding process in 2010, was specifically for handling coal, clinker, and cement.
Therefore, the inclusion of additional commodities such as copper and gold would also fall within the purview of public procurement regulations and would normally necessitate a fresh bidding process.
MoMA and Petroleum Division Justify Exemption
MoMA further explained that the Reko Diq Mining Company (RDMC) had highlighted the scale and strategic importance of the project.
Reko Diq is considered one of the largest undeveloped copper-gold resources globally. RDMC’s ownership is distributed as follows: 50% by Barrick Gold Corporation, 25% by three federal state-owned entities, and 25% by the Balochistan government—15% of which is on a fully funded basis and the remaining 10% on a free-carried basis.
Classified as a “qualified investment” under the Foreign Investment (Promotion & Protection) Act, 2022, the project is expected to become the largest source of foreign direct investment (FDI) in Pakistan’s history.
MoMA emphasized that allowing PIBT to handle exports from Reko Diq—by amending the existing Implementation Agreement (IA)—would not only facilitate Pakistan’s mineral export ambitions but would also make efficient use of the existing infrastructure at Port Qasim.
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In light of these factors, MoMA formally requested PPRA to exempt the procurement process from the requirements of Rules 12 and 20 of the Public Procurement Rules, 2004, using the authority granted under Section 21 of the PPRA Ordinance, 2002.
Support from SIFC and Petroleum Division
MD PPRA also noted that the Special Investment Facilitation Council (SIFC) had backed the proposal.
The SIFC Executive Committee, during its January 22, 2025 meeting, had reached a consensus to approve an exemption enabling PIBT to handle new commodities—including copper and gold—as part of the Reko Diq initiative.
The minutes from that meeting, released on February 19, 2025, state that:
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The Executive Committee unanimously supported the exemption to permit PIBT to manage exports of additional minerals and natural resources; and
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It directed the Petroleum Division to liaise with MoMA and submit a formal exemption request to PPRA, authorizing PQA and PIBT to revise their Implementation Agreement accordingly.
The Petroleum Division subsequently submitted its own request for exemption, aligning with the direction provided by the SIFC. These submissions were taken up during the 93rd meeting of the PPRA Board.
Final Recommendation and Conditions
Following comprehensive deliberations, the PPRA Board arrived at the following conclusion:
“Based on input from the Ministry of Maritime Affairs, the Petroleum Division, and the endorsement of the Special Investment Facilitation Council, the Board recommends that the Federal Government grant an exemption under Section 21 of the PPRA Ordinance, 2002, relieving the Port Qasim Authority of compliance with Rules 12 and 20 of the Public Procurement Rules, 2004. This exemption would permit PQA to negotiate terms with PIBT for the export—on a non-exclusive basis—of copper-gold ores and related mineral commodities, contingent on the rationale provided.”
Nonetheless, the Board underscored the importance of safeguarding public interest in the process. It stressed that PQA, as the procuring entity, must uphold the principles of transparency, fairness, accountability, and financial prudence.
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Any agreement with PIBT must ensure that government revenues are protected and that the process delivers value for money.
