Illegal mining has cost Khyber Pakhtunkhwa (KP) Rs8 billion, while irregularities in the provincial Minerals Department total more than Rs16.94 billion, according to an audit report by the Auditor General of Pakistan.
The report identifies the failure of the department to recover outstanding amounts as a major source of loss. Rs4.31 billion in dues remained uncollected from defaulting contractors, and a further Rs810 million was not recovered from mineral lease holders.
The audit also found that the province lost Rs580 million because profits from joint ventures were never deposited. In addition, the department collected rent on government land at extremely low rates, resulting in a loss of Rs140 million.
A separate audit of the KP Mineral Development Department, reported earlier this month, found Rs1.678 billion in losses from illegal mining. The amount remained outstanding against various offenders as of July 2024.
The report said the department made no serious effort to recover the dues. It also failed to convert 3,125 of 8,400 illegal mining cases into FIRs, causing further losses.