The Ministry of Petroleum has forwarded 12 candidates to the Prime Minister for the appointment of four independent directors on the Board of the Pakistan Mineral Development Corporation (PMDC).
According to sources, the ministry has submitted four panels, each containing three candidates. The Prime Minister will select one candidate from each panel.
The first panel includes Zafar Mahmood, proposed for the position of chairman, Shehryar A. Buksh and Dr. Nisar Ahmed Cheema.
The second panel comprises Mir Behroz Regi, Ardeshir Khursheed Marker and Javaid B. Sheikh.
The third panel includes Muhammad Ayub, Zarak Khan and Mian Ghulam Mustafa, while the fourth panel consists of Sima Kamil, Zara Salman and Javeria Tareen.
PMDC Nomination Raises Conflict of Interest Concerns
The nomination of Mir Behroz Regi has raised potential conflict of interest concerns because he reportedly serves as president of the All Pakistan Mine Owners Association (APMOA).
The association represents mine owners, including a significant number of contractors working with PMDC.
The relationship between PMDC and its raising contractors has remained contentious, particularly after the corporation introduced reforms to its traditional coal mining contracts.
According to sources, contractors had been paying PMDC around Rs. 1,500 per tonne of coal while selling the same coal in the market for approximately Rs. 40,000 per tonne.
The arrangement was reportedly putting pressure on PMDC’s finances, with projections suggesting that its cash flows could turn negative within a couple of years.
To improve revenue, strengthen oversight and promote safer mining practices, PMDC introduced changes to its Raising Contractor Model and moved towards a Joint Operation Model.
However, the proposed changes have faced resistance from contractors through strikes, court cases and political pressure. PMDC is currently contesting related disputes before various judicial forums.
The nomination has therefore drawn attention to the potential conflict between the interests of mine owners and PMDC’s responsibilities as a state-owned mining corporation.
The Secretary Petroleum was approached for comments but had not responded until the filing of this report.
