By: Mushtaq Raza
The Minerals Department of the Pakistan Mineral Development Corporation (PMDC) has fallen victim to severe bureaucracy, nepotism, and corruption. Rules and regulations are blatantly violated, and investments worth millions of rupees are sacrificed for personal gains. The latest example of this involves Mine No. 17, located in the Makhrach area of Chakwal, where serious allegations have emerged regarding favoritism towards a preferred company in a tender issued under the PMDC, while a transparently selected company was sidelined.
According to sources, PMDC issued tenders for Mine No. 17 on February 7, 2025. Two companies, Nexus and MOS, participated. MOS fulfilled all legal requirements and submitted the lowest bid, thereby winning the tender. Nexus, on the other hand, lacked sales tax registration and other necessary documents, which led to its disqualification. However, the Project Manager posted in Chakwal allegedly colluded with Nexus and secretly helped it complete the required documents. Violating all procedural rules, the tender—previously awarded to MOS—was granted to Nexus on May 25.
Shockingly, MOS was neither informed of this change nor given a chance to object or appeal. Sources claim this illegal act was committed in exchange for a bribe of one million rupees, an allegation that has been formally submitted to the Federal Ombudsman on a stamped affidavit by a complainant.
According to MOS, Mine No. 17 was already under their control, and they had invested over 7 million rupees for salt extraction. The contract could have been extended. Ignoring this investment and the transparent process, and ousting them without reason, is not only a legal violation but also severely damages investor confidence in the business sector.
This is not an isolated incident. Several other investors in the mineral sector have faced similar experiences in the past—having spent millions to develop mines, only to have their contracts revoked through collusion between project managers and senior officials, who then awarded the projects to favored companies.
The Punjab Mines and Minerals Association has strongly condemned the incident, leveling serious allegations not only against the Chakwal Project Manager but also the senior management of PMDC. The Association claims that a “tender mafia” operates in the mineral sector, awarding contracts in exchange for millions in bribes and commissions annually, while deliberately excluding genuine legal investors.
The Association has called upon the Federal Government, the Prime Minister of Pakistan, the Minister for Energy, and the Chief Minister of Punjab to order an independent inquiry into the entire system, expose the irregularities in the mining sector, and ensure that the responsible bureaucrats are strictly punished according to the law.
