Govt urged to approve exemption for PIBT to handle Reko Diq cargo without bidding process: report

The Public Procurement Regulatory Authority (PPRA) has recommended that the federal government approve the exemption of the Pakistan International Bulk Terminal (PIBT) from the competitive bidding process to handle cargo for the Reko Diq copper and gold project, Business Recorder reported citing sources.  

This recommendation follows discussions over two PPRA Board meetings, where concerns were raised regarding the inclusion of new commodities in PIBT’s existing concession.

PPRA Managing Director Hasanat Ahmed Qureshi informed the Board on April 11, 2025, that a detailed examination was undertaken regarding the request from the Ministry of Maritime Affairs to allow PIBT to handle copper, gold, and other minerals. The PPRA Board had previously deferred the matter, citing the need for further clarifications, especially on whether the proposed handling fell within the definition of public procurement.

The Ministry of Maritime Affairs clarified that Port Qasim Authority (PQA) qualifies as a “procuring agency” under the PPRA Ordinance due to its status as a statutory body. 

However, PQA’s concession with PIBT, granted in 2010 for handling coal, clinker, and cement, originally required competitive bidding. The proposed expansion to include additional minerals, including copper and gold, raised questions about the necessity of bidding.

The Ministry of Maritime Affairs also informed the PPRA that the Reko Diq Mining Company (RDMC), a joint venture involving Barrick Gold and the Government of Balochistan, had requested the use of PIBT to support the export of copper and gold from the world’s largest undeveloped copper-gold deposit. 

The project, which is expected to generate significant foreign investment, has been classified as a “qualified investment” under the Foreign Investment (Promotion & Protection) Act, 2022.

According to the report, the PPRA Board, after considering the requests from the Ministry of Maritime Affairs, the Petroleum Division, and the support of the Special Investment Facilitation Council (SIFC), recommended that the federal government grant an exemption under Section 21 of the PPRA Ordinance, 2002. 

The exemption would allow the Port Qasim Authority to engage PIBT for the export of copper, gold, and other minerals without the competitive bidding process.

However, the PPRA Board emphasised that government interests, particularly regarding revenue, should be safeguarded. The process must remain transparent, fair, and accountable to ensure value for money.

Earlier, on April 15, it was reported by The News that the government has granted an exemption to the PIBT, allowing it to handle exports of copper, gold, and other minerals from Barrick Gold Corp.’s $6 billion Reko Diq project.

However, PIBT clarified that it has not yet received any official communication regarding the exemption granted by the PPRA to handle exports of copper, gold, and other minerals. 

In a statement issued to the Pakistan Stock Exchange (PSX), PIBT responded to a news report claiming that the PPRA had granted the company an exemption for handling these exports. PIBT emphasised that, as of now, no formal communication has been received from the relevant authorities on this matter.