Khyber Pakhtunkhwa: Billions in Alleged Irregularities Uncovered in the Minerals Sector During PTI’s Tenure.

Report Cites Illegal Mining, Unrecovered Contractor Dues and Low-Rent Allocation of Government Land; Inquiry Recommended
PESHAWAR: Alleged financial irregularities in Khyber Pakhtunkhwa’s Minerals Department during the Pakistan Tehreek-e-Insaf (PTI) government have reportedly resulted in substantial losses to the provincial exchequer, according to a report published by Qudrat Daily.
The report, citing audit findings for 2022 and 2023, states that losses exceeding Rs16.94 billion were identified in connection with various matters during a one-year period.
Billions in Losses Allegedly Linked to Illegal Mining
According to the report, illegal mining allegedly caused losses of more than Rs8 billion to the provincial government. It also states that outstanding dues amounting to Rs4.31 billion were not recovered from defaulting contractors.
The audit findings reportedly raised concerns that illegal mining continued despite the presence of departmental check posts, inspectors and other relevant staff. This was linked to an additional estimated loss of Rs3.08 billion.
Irregularities in Gravel, Sand and Mineral Revenue
The report also identifies an estimated loss of Rs3.07 billion allegedly associated with the unlawful extraction of gravel and sand under the pretext of constructing highways and small dams.
According to the cited findings, Rs547.2 million in excise duty on minerals remained uncollected. The report further alleges that outstanding dues exceeding Rs810 million related to coal, bauxite, limestone and soapstone mines were waived.
Government Land Allegedly Leased at Significantly Lower Rates
The audit report reportedly found that government land belonging to the Minerals Department in Peshawar was provided at Rs200 per acre instead of the prescribed rate of Rs10,000 per acre. The resulting loss to the public treasury was estimated at Rs140 million.
The report also cites losses exceeding Rs530 million due to the non-recovery of dues related to small dams in Kohat, Nowshera, Swabi, Haripur and other districts. In Mardan, royalty payments amounting to Rs63.6 million were reportedly not recovered.
Auditor General Recommends an Inquiry
According to the report, the Auditor General recommended an inquiry to determine responsibility for the alleged financial irregularities and establish the extent and causes of losses to the public exchequer.
The findings concern audit objections and alleged financial losses. Any determination of individual or departmental responsibility would depend on further investigation, examination of official records and the applicable legal process.
Editorial note: The figures in this report are based on the supplied news text. The original audit report should be checked before publication, particularly because the individual amounts listed may not reconcile with the reported overall loss.