The federal government has approved a big rightsizing and privatization plan to restructure state-owned entities within a 90-day implementation window.
A key feature of the reform is the inclusion of Pakistan Mineral Development Corporation (PMDC) in the first phase of privatization, alongside Saindak Metals Company and ENAR Petrotech Services. The Petroleum Division has been instructed to consult the Privatization Commission and prepare a divestment plan within 90 days.
Under the plan, the Geological Survey of Pakistan (GSP) will be transformed into a more commercial, technology-driven organization, with an independent adviser to be appointed to design a self-sustaining business model within two to three years.
The proposal also calls for downsizing, including major cuts in administrative and overall staffing levels, along with a reduced budget.
The Central Inspectorate of Mines will be abolished completely, while the Department of Explosives will continue operations under a cost-recovery framework, potentially charging provincial governments for services.
The decision is notable because PMDC is a profitable state-owned mining company and Pakistan’s only federal mining corporation, with operations spanning coal, salt, and metal exploration projects across multiple provinces, including major assets such as the Khewra Salt Mines and the Duddar Lead-Zinc project.
Despite its profitability, PMDC has seen steady financial growth, with revenue rising to Rs5.27 billion in FY2024-25 and profit after tax exceeding Rs2.35 billion in recent years. It also contributes dividends and taxes to the national exchequer, alongside an ongoing expansion pipeline of mineral exploration projects.
The move places PMDC within a wider government strategy to restructure loss-making and commercially viable public entities under a unified rightsizing and privatisation framework.