Balochistan Public Accounts Committee Raises Concerns Over Mining Royalties and Unpaid Revenues

Quetta: The Balochistan Public Accounts Committee (PAC) has expressed serious concerns over financial irregularities in the Department of Mines and Minerals, particularly regarding the non-recovery of royalties and outstanding revenue shares owed to the province.

PAC Reviews Audit Reports on Mining Revenues

A meeting was held to review the audit reports and compliance records of the Department of Mines and Minerals. The discussions highlighted financial mismanagement and the province’s unclaimed financial rights.

Saindak Metals Limited: Balochistan’s 30% Revenue Share Unpaid

Under Article 38(G) of the 18th Amendment, Balochistan is entitled to 30% of Saindak Metals Limited’s (SML) net profits. However, the Directorate of Mines and Minerals failed to recover PKR 669.432 million for the fiscal year 2020-21.

Committee members noted that since 2020, the Petroleum Division had instructed SML to halt payments to the Balochistan government. PAC member Zabad Ali Reki called this decision a violation of constitutional rights and financial agreements. PAC strongly opposed the delay and announced that they would escalate the matter to higher levels.

The committee decided to hold a special session on this issue and formally register a complaint with the Chief Secretary and Chief Minister of Balochistan.

Pending Federal Payments: Balochistan Received Only PKR 5.6 Billion Since 2010

According to official reports, Balochistan has received PKR 5.6 billion in revenue since 2010, while the federal government still owes PKR 8.5 billion.

Unrecovered Mining Royalties and Rental Fees

As per Balochistan Minerals Concession Rules 2002 (Rule 104), mining companies must pay royalties and rental fees every six months. However, the department failed to collect PKR 395.918 million between 2019 and 2022.

Despite repeated warnings in audit reports from 2019 to 2022, no corrective actions were taken. The department cited a Supreme Court ruling as a reason for non-recovery. Still, PAC criticized the department’s legal inefficiencies and directed officials to readdress the issue in the provincial cabinet.

PAC announced that a follow-up meeting will be held soon, and strict action will be taken against those responsible—including retired officials if necessary.

Urgent Collection Orders Issued

The committee issued immediate directives for revenue collection:

• PKR 12 million from DG Cement within 15 days
• PKR 228.715 million from contractors within one month

Audit Exposes Budget Mismanagement in Mines Department

A financial review of the 2021-22 budget revealed severe administrative inefficiencies:

• Non-Development Budget: Initially PKR 3,767.319 million, later increased by PKR 631.430 million, but PKR 915.527 million remained unutilized.
• Development Budget: Originally PKR 1,496.368 million, later reduced to PKR 166.291 million, with PKR 2.182 million left unspent.
• Overall Budget Utilization: Out of PKR 5,263.687 million, only PKR 3,283.078 million was spent, leaving 28.08% of funds unused.

PAC heavily criticized the return of unused funds, labeling it a violation of financial regulations.

Lack of Digital Infrastructure in the Mining Sector

PAC noted that the Department of Mines and Minerals lacks a proper information management system, making financial tracking difficult. The committee directed the Planning and Development Department to allocate funds for establishing an IT-based record-keeping system.

Strengthening Financial Oversight

PAC emphasized that Balochistan’s economic development depends on financial accountability in the mining sector. It warned that strict action would be taken against official negligence or mismanagement.

The committee pledged to implement strong financial discipline, ensure the recovery of provincial dues, and hold those responsible accountable to protect Balochistan’s financial interests.

Published in The Gwadar Post, 17 Feb 2025