By: Mushtaq Raza
The silence of the Ministry of Energy regarding the illegal appointment of the Managing Director and Chief Executive Officer at the Pakistan Mineral Development Corporation (PMDC) has raised serious concerns. According to details, the appointment made in September 2023 has sparked a legal, administrative, and ethical controversy. According to oversight bodies such as the Securities and Exchange Commission of Pakistan (SECP) and the Corporate Monitoring Unit (CMU), the appointment of Asad Ahmad violates multiple federal laws, public sector governance protocols, and corporate ethics. An official from the Mines and Minerals Association of Punjab has formally appealed to the Secretary of the Petroleum Division, Ministry of Energy, who is the legal overseer of the organization, to take immediate action against this illegal appointment and ensure accountability in accordance with the law. The appeal also recommends involving relevant institutions such as the SECP, CMU, and the Special Investment Facilitation Council in the investigation process. PMDC is a wholly state-owned enterprise with a history spanning over fifty years and operates under the Ministry of Energy. The appointment of its head in September 2023 was required to follow provisions under the Companies Act 2017, Public Sector Companies (Corporate Governance) Rules 2013, Guidelines for the Appointment of Chief Executives 2015, State-Owned Enterprises Act 2023, and Ownership and Governance Policy for State-Owned Enterprises 2023. As per Article 79 of PMDC’s governance framework, the appointment of the Managing Director/Chief Executive Officer and the Board of Directors must be carried out through a transparent, structured, and lawful process with formal approval from the federal government. The job advertisement published on 6 March 2022 reduced the required senior management experience from 10 years to 5 years, in clear violation of the Guidelines for the Appointment of Chief Executives 2015, thereby invalidating the appointment process.
PMDC’s Board and its Chairman made the appointment without mandatory approval from the federal government, in direct violation of the Corporate Governance Rules 2013, State-Owned Enterprises Act 2023, and Clause 26 of the Ownership and Governance Policy 2023.
The government’s Commercial Audit Report for the financial year 2022–23 explicitly noted violations regarding eligibility and due process in the appointment. However, no action has yet been taken by the Board, Ministry of Energy, or SECP. According to Clause 35, SECP is obliged to review such matters and inform the Secretary of Petroleum for appropriate action. Furthermore, while the approved monthly salary package was PKR 1.2 million (12 lakh rupees), the appointed individual was allegedly provided PKR 2 million (20 lakh rupees) per month along with a new 1800cc hybrid vehicle without legal authorization—causing direct financial loss to the national exchequer and constituting a blatant misuse of public funds.
The report also indicates that several more qualified candidates had been shortlisted in accordance with official rules and procedures but were ignored in favor of Asad Ahmad, making this a case of legal breach and betrayal of public trust. The situation became more complex when it emerged that PMDC Chairman Shamsuddin Ahmed Sheikh, who is also the head of another mineral company, National Refinery Limited, was directly involved in the appointment—raising serious concerns of a conflict of interest. The petitioner has requested the Secretary of Petroleum to immediately cancel Asad Ahmad’s appointment, hold all officers and board members involved in the illegal process accountable, and ensure that all future appointments strictly adhere to legal frameworks, eligibility standards, and federal approval processes. Upholding the rule of law is essential to protect public resources and preserve the integrity of state institutions. Legal experts emphasize that this is not merely an issue of a single appointment but reflects a broader state and administrative failure, which must be urgently addressed. If not resolved, it could cause irreparable damage to Pakistan’s oldest mineral development corporation.
