Employees Express Discontent over Government’s Decision to Privatize Pakistan Mineral Development Corporation

By : Kh Kashif Mir

The recent decision by the federal government to privatize the Pakistan Mineral Development Corporation (PMDC)—the only state-owned mining entity in the country—has caused significant concern among employees nationwide.

According to sources speaking to Media, the cabinet approved the privatization of PMDC last week, despite the corporation generating billions of rupees in profit and contributing substantial revenue to the Federal Board of Revenue. It is important to note that PMDC has over 50 years of experience and operates across all provinces, making it a vital player in the mining sector.

PMDC manages a total of 18 mining projects, which include five salt mining operations, four coal mining ventures, seven joint ventures, and two exploration initiatives. Among its notable assets are the historic Khewra Salt Mines, renowned for both rock salt production and tourism, and the Sor Range coal mine in Quetta, recognized as one of the best underground coal mines in Pakistan.

Currently, PMDC employs 2,101 individuals directly and supports approximately 8,000 families across 13 field formations. As a self-sustaining and profitable state-owned enterprise, PMDC has contributed Rs. 7.29 billion to the national treasury over the past five years, alongside corporate social responsibility (CSR) contributions totaling Rs. 735 million.

Key Initiatives

Exploration: The corporation has engaged in exploring 1,000 square kilometers of antimony blocks in Balochistan, which have the potential to transform the mining landscape in Pakistan.

Acquisitions: PMDC has acquired 40,000 acres for iron ore mining in Balochistan, placer gold blocks in Punjab, and base metal projects in Chitral.

Foreign Investment: A partnership with MSCI USA has led to a $200 million foreign investment for a pink rock salt grinding and packaging plant.

Value-Added Ventures: The corporation is also developing projects focused on coal-to-coke conversion, humic acid production, coal briquetting, and extracting coal bed methane.

These initiatives are designed to generate significant foreign exchange and provide socio-economic benefits, creating employment opportunities in underprivileged regions of the country.

However, employees and industry experts argue that privatization at this juncture would yield only a one-time financial benefit while jeopardizing ongoing and planned initiatives that could result in widespread job losses. This decision would directly affect thousands of families that depend on PMDC for their livelihoods.

Given PMDC’s status as a profitable and growing organization, many believe that the privatization of the corporation is unjustified. There are calls for the government to reconsider and revoke its decision to privatize PMDC, emphasizing the need to prioritize the welfare of employees and their families.

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