Lawmakers raised concerns over the financial performance of Pakistan Mineral Development Corporation (PMDC) during a meeting of the Senate Standing Committee on Finance.
The committee, chaired by Afnan Ullah Khan, received a detailed briefing from officials about the organisation’s operations, revenue structure, and ongoing mineral development projects.
Managing Director of Pakistan Mineral Development Corporation told the committee that the organisation generates an annual profit of about Rs1bn from its operations.
Officials also informed lawmakers that the corporation records revenue of around Rs2.5bn before tax payments are deducted.
Committee members expressed concern over what they described as extremely low revenue levels considering the scale of mineral resources and land managed by the state-owned corporation.
Senator Bilal Ahmad Khan said he would be willing to lease land worth Rs1bn, highlighting concerns about the current value generated from mineral leases.
Security Costs in Balochistan Coal Projects
Officials told the committee that coal projects in Balochistan require payments to the Frontier Corps for security services.
The managing director also disclosed that payments must sometimes be made to private militias in the region to ensure security arrangements for coal mining operations.
According to the briefing, coal mining activities cover a total area of 17,363 acres managed by Pakistan Mineral Development Corporation.
Questions Over Low-Cost Land Leases
Lawmakers were informed that 1,120 kanals of land managed by Pakistan Mineral Development Corporation had been leased to a private company at comparatively low annual rates.
Officials said Lucky Core Industries Limited received land on lease for an annual payment of about Rs494,000, while Olympia Chemicals obtained 56 kanals for Rs113,000.
Following the discussion, the committee directed the corporation to review the lease agreements, increase annual lease charges, and submit a detailed report explaining the leasing arrangements.
