The head of Pakistan’s mine owners’ body has been nominated for the Board of the Pakistan Mineral Development Corporation (PMDC), raising conflict-of-interest concerns as the state-owned company fights the same contractors his association represents.
Sources told ProPakistani that the Ministry of Petroleum has forwarded four panels of candidates to the Prime Minister, who will pick four independent directors for the PMDC Board.
Who Is on the Four Panels
The first panel includes Zafar Mahmood, proposed as Chairman, Shehryar A. Buksh and Dr. Nisar Ahmed Cheema. The second has Mir Behroz Regi, Ardeshir Khursheed Marker and Javaid B. Sheikh.
The third panel includes Muhammad Ayub, Zarak Khan and Mian Ghulam Mustafa, while the fourth consists of Sima Kamil, Zara Salman and Javeria Tareen.
Why Regi’s Nomination Is Under Question
Regi is reportedly the President of the All Pakistan Mine Owners Association (APMOA), whose members include many of PMDC’s Raising Contractors (RCs).
According to sources, these contractors had been paying PMDC around Rs. 1,500 per tonne of coal while selling the same coal in the market for about Rs. 40,000 per tonne. Projections suggested this could push PMDC’s cash flows into the negative within a couple of years.
PMDC then introduced a Joint Operation Model to boost revenue, tighten oversight and promote safer mining. The contractors have resisted through strikes, litigation and political pressure, and PMDC is contesting the disputes in various courts.
What This Means
Under the old deal, PMDC kept less than 4% of coal’s market value, while contractors earned about Rs. 38,500 per tonne. A board member tied to those contractors would sit on the body deciding whether these PMDC reforms go ahead, as the government pitches the mineral sector to foreign investors.
The Secretary Petroleum did not respond to a request for comment.
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