The nomination of a mine owners’ association leader to the Pakistan Mineral Development Corporation (PMDC) Board has raised concerns. The proposed appointment comes as the state-owned company faces legal disputes with mining contractors.
According to sources, the Ministry of Petroleum has forwarded four candidate panels to the Prime Minister. The Prime Minister will select four independent directors for the PMDC Board.
The controversy involves Mir Behroz Regi, who reportedly serves as President of the All Pakistan Mine Owners Association (APMOA). The association represents mine owners, including several contractors working with PMDC.
Questions have emerged over whether his association role could create a potential conflict of interest. This is particularly relevant because PMDC is currently involved in disputes with contractors represented by the association.
Four Panels Submitted for PMDC Board Selection
The Ministry of Petroleum has reportedly proposed four panels containing three candidates each.
The first panel includes Zafar Mahmood, proposed as Chairman, alongside Shehryar A. Buksh and Dr. Nisar Ahmed Cheema.
The second panel consists of Mir Behroz Regi, Ardeshir Khursheed Marker and Javaid B. Sheikh.
The third panel includes Muhammad Ayub, Zarak Khan and Mian Ghulam Mustafa.
The fourth panel features Sima Kamil, Zara Salman and Javeria Tareen.
The Prime Minister will select four independent directors from these proposed candidates. Their appointments will influence the corporation’s future board decisions.
Why Mir Behroz Regi’s Nomination Has Raised Questions
Sources say Regi’s nomination has attracted attention because of his reported position in APMOA. Several members of the association are also PMDC raising contractors.
These contractors previously paid PMDC approximately Rs. 1,500 per tonne of coal. However, the same coal was reportedly sold in the market for around Rs. 40,000 per tonne.
According to projections, this arrangement could push the corporation’s cash flows into negative territory within a few years.
Under the previous arrangement, PMDC received less than four percent of coal’s market value. Contractors reportedly earned approximately Rs. 38,500 per tonne.
The situation prompted PMDC to introduce a Joint Operation Model. The initiative aimed to increase revenue, improve monitoring and encourage safer mining practices.
Contractors Oppose PMDC’s New Operating Model
The new model has faced resistance from several contractors. They have reportedly challenged the changes through strikes, court cases and political pressure.
PMDC is currently contesting these disputes in different courts. The disagreements concern changes to the existing mining arrangements and the corporation’s revenue structure.
The proposed board appointment has therefore attracted attention. A director associated with the contractors’ representative body could participate in decisions concerning these reforms.
This situation has raised questions about potential conflicts of interest and independent oversight. The issue is particularly important while PMDC continues defending its operating model.
Government Yet to Comment on the Nomination
The Ministry of Petroleum has forwarded the candidate panels for the Prime Minister’s consideration. The final selection of four independent directors remains with the Prime Minister.
The Secretary Petroleum did not respond to a request for comment regarding the matter.
The proposed appointments come as Pakistan seeks to attract foreign investment into its mineral sector. The decisions made by the PMDC Board could affect ongoing reforms and future mining operations.
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The nomination process has brought attention to the importance of transparent board appointments. It has also highlighted the need to address potential conflicts of interest within public-sector institutions.
