ISLAMABAD: Coal miners in Balochistan regularly pay money to militant separatist groups to keep their businesses safe from attacks, and these payments have now become part of their production cost. This was stated by Chief Executive Engineer Asad Ahmad of the Pakistan Minerals Development Corporation (PMDC) during his presentation at a meeting of the Senate Standing Committee on Privatisation, held under the chairmanship of Senator Afnanullah Khan. He said that the banned Balochistan Liberation Army (BLA) charges a fixed amount per tonne of coal extracted from mines in Balochistan. He claimed that mine owners also pay PKR 300–500 per tonne to Frontier Constabulary (FC) personnel. Senator Bilal Ahmed Khan observed that, unfortunately, both the FC and militant groups are beneficiaries of coal extraction, while the local population has hardly benefited from it for a long time. The PMDC chief suggested that the security of these coal mines should be handed over to local communities. However, he added that both the provincial and federal governments would need to take the initiative, as PMDC lacks the resources to implement such an arrangement. Engineer Asad Ahmad further briefed the committee that the organisation possesses extensive mineral reserves across the country. Coal mines spread over 17,363 acres are located in Degari, Sharigh and Lakhra, while salt mineral reserves cover an area of 22,737 acres. In addition, soapstone reserves extend over nearly 7,000 acres. The committee was informed that mineral exploration activities are under way in Balochistan’s Pishin and Zhob districts over an area of approximately 246,753 acres, with exploration licences issued for a period of three years. The committee was further informed that PMDC’s head office in Islamabad is spread over 40 kanals, while the regional office in Hayatabad covers 15 kanals and the branch office in Quetta Cantonment occupies 33 kanals. The salt reserves in Khewra span 18,192 kanals, while total salt reserves across the country amount to 51,426 kanals. During the briefing, the committee was told that certain lands have been leased to private companies. For instance, 1,120 kanals of land for the Khewra project has been leased at an annual rent of PKR 500,000, while another company has been provided 56 kanals at an annual rent of PKR 113,780. Members of the committee expressed concern that these rents are significantly lower than prevailing market rates and directed the authorities to review the agreements. The committee chairman recommended revisiting lease agreements with the concerned companies and increasing rental charges accordingly. The committee was also informed that mining land in Balochistan is leased for a period of 30 years. PMDC receives PKR 2,500 for each tonne of coal extracted, while the production cost is approximately PKR 17,000 per tonne. The coal is sold in the market for PKR 32,000–35,000 per tonne. The organisation’s annual income stands at nearly PKR 1 billion, while its total revenue before tax is approximately PKR 2.5 billion. Committee members termed the income comparatively low and emphasised the need to improve operational performance. Copyright Business Recorder, 2026