Ministry Proposes Candidates for PMDC Board, Including Mine Owners' Association Head
Ministry of Petroleum forwards four panels to the Prime Minister for PMDC's board of directors, with one nominee heading an association representing contractors in dispute with the state-owned firm.
The Ministry of Petroleum has forwarded four separate panels of candidates to the Prime Minister for appointment as independent directors on the board of the Pakistan Mineral Development Corporation (PMDC), according to sources familiar with the matter. The Prime Minister is expected to select four directors from the proposed lists.
The first panel comprises Zafar Mahmood, proposed as Chairman, alongside Shehryar A. Buksh and Dr. Nisar Ahmed Cheema. The second panel includes Mir Behroz Regi, Ardeshir Khursheed Marker and Javaid B. Sheikh. The third names Muhammad Ayub, Zarak Khan and Mian Ghulam Mustafa, while the fourth consists of Sima Kamil, Zara Salman and Javeria Tareen.
The nominations have drawn attention because Mir Behroz Regi is reportedly the President of the All Pakistan Mine Owners Association (APMOA), an organisation whose members include several of PMDC's Raising Contractors. Those contractors are currently engaged in disputes with PMDC over the terms under which they operate.
According to sources, contractors had been paying PMDC approximately Rs. 1,500 per tonne of coal while selling the same coal in the open market for around Rs. 40,000 per tonne. Under that arrangement, PMDC retained less than 4 percent of the coal's market value while contractors earned roughly Rs. 38,500 per tonne. Projections suggested the structure could push PMDC's cash flows into negative territory within a few years.
In response, PMDC introduced a Joint Operation Model aimed at boosting revenue, strengthening oversight and promoting safer mining practices. The contractors have reportedly resisted the changes through strikes, litigation and political pressure, with PMDC contesting the disputes in various courts.
The prospect of a board member tied to the contractors sitting on the body that will decide the future of these reforms has raised conflict-of-interest questions, particularly as the government seeks to attract foreign investment into the mineral sector. The Secretary Petroleum did not respond to a request for comment.
