Serious irregularities worth billions of rupees have allegedly surfaced in gold mining contracts handed out in Khyber Pakhtunkhwa during the tenure of the Pakistan Tehreek-e-Insaf (PTI) government, the National Accountability Bureau (NAB) said. The anti-graft body has raised concerns about auction procedures, contract awards and mining work along the Indus and Kabul rivers.
An official report issued in October 2024 stated that four placer gold mining blocks were auctioned for a combined sum of roughly Rs4.93 billion. The deals have come under scrutiny over claims that certain bidders were favoured and that mandatory legal and regulatory requirements were overlooked.
Four auctioned blocks and their winning bidders
The report identified the following winners and amounts:
- Block A on the Indus River went to Globa Core Private Limited for Rs1.25 billion.
- Block B went to Majco Private Limited for Rs1.261 billion.
- Block C went to Himalaya Earth Private Limited for Rs1.305 billion.
- Block D went to Shakardara Minerals Private Limited for Rs1.111 billion.
NAB has requested records of the disputed contracts from the KP Minerals Department as part of its inquiry.
Questions over base prices, auction rules and mapping
Among the concerns are base prices allegedly set without an accurate assessment of gold reserves, and a 2015 geological study that was allegedly ignored. Alleged violations of the Mineral Auction Rules 2022 have also been questioned.
Geological mapping, which began in February 2022, was reportedly halted in November 2023. Allotment letters were also issued, although the contracts were allegedly not finalised within the prescribed 14-day period.
Alleged mining without approvals or stay order compliance
Mining activity reportedly continued in November 2024, despite a stay order from the Peshawar High Court. NAB has also raised concerns that operations were carried out without environmental approvals or the required mining plans.
The findings further point to the alleged unauthorised use of more than 1,500 excavators. Leaseholders were reportedly charging excavator operators between Rs500,000 and Rs700,000 a week, and estimates suggest unauthorised subleasing may have generated between Rs7.5 billion and more than Rs10 billion weekly. Records of gold production and sales from the operations were also reported as incomplete.
The allegations have raised questions about the officials who approved and supervised the contracts, and who were responsible for ensuring compliance with the applicable rules during the PTI government’s tenure.
