Khyber Pakhtunkhwa’s minerals sector has faced allegations of financial irregularities worth billions of rupees during the Pakistan Tehreek-e-Insaf (PTI) government. An audit report identified losses exceeding Rs16.94 billion for the provincial treasury in a single year during 2022 and 2023. The findings raise questions about revenue collection, mining oversight and the management of public resources.
According to the report, illegal mining accounted for more than Rs8 billion in alleged losses. Authorities also failed to recover Rs4.31 billion in outstanding payments from defaulting contractors. These findings highlight significant gaps in revenue recovery from the province’s mineral resources.
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The report further identified losses of Rs3.08 billion linked to illegal mining despite the presence of departmental checkpoints, inspectors and other staff. Another Rs3.07 billion in losses resulted from the illegal extraction of gravel and sand under projects involving highways and small dams. The audit pointed to continued extraction despite existing departmental monitoring arrangements.
Revenue collection also faced shortcomings in other areas of the minerals sector. The department failed to collect Rs547.2 million in excise duty imposed on minerals. Additionally, authorities waived more than Rs810 million in outstanding dues related to coal, bauxite, limestone and soapstone mines.
The audit also questioned the allocation of government land belonging to the Minerals Department in Peshawar. Officials reportedly leased the land at Rs200 per acre instead of the prescribed rate of Rs10,000. The report estimated that this decision caused a loss of Rs140 million to the public treasury.
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Furthermore, unpaid dues associated with small dams in Kohat, Nowshera, Swabi, Haripur and other districts caused losses exceeding Rs530 million. The report also identified Rs63.6 million in uncollected royalty payments in Mardan. These figures point to revenue collection concerns across multiple districts and different categories of mineral-related activities.
The Auditor General has recommended inquiries against those responsible for the reported irregularities. The proposed investigations aim to establish accountability and determine the financial damage caused to the provincial treasury. The report does not establish individual guilt, leaving further inquiries to clarify responsibility for the identified losses.