PROVINCE REPORT
ISLAMABAD: The Collective Bargaining Agent (CBA) of the state-owned Pakistan Mineral Development Corporation (PMDC) has warned that the cancellation of PMDC’s Warcha rock salt mining lease by the Punjab government could jeopardize a proposed $200 million foreign investment, threaten thousands of jobs, and damage investor confidence in Pakistan’s mining sector.
Addressing a press conference, Secretary General of the All Pakistan CBA Unions of PMDC, Rai Mazhar Iqbal Kharal, said the corporation’s mining lease had been lawfully renewed until March 2032. He termed the provincial government’s decision to cancel the lease and auction the same mining area to a private company as legally disputed, adding that the matter is currently pending before the Lahore High Court.
He said the proposed foreign investment was aimed at establishing modern rock salt processing and value-addition facilities, which would create employment, enhance exports, increase foreign exchange earnings, and strengthen Pakistan’s position in global markets.
Warcha Union leader Main Aftab Ul Hasan said uncertainty surrounding the lease could discourage future investment, stressing that investors require regulatory stability and transparent decision-making. He also expressed concern over the livelihoods of thousands of workers and miners associated with the Warcha mine.
The union maintained that PMDC has successfully operated the Warcha mine for decades, contributing significantly to government revenues and developing mining infrastructure. It also claimed that PMDC had offered the Punjab government better financial returns than those expected under the auction arrangement.
The CBA urged the authorities to protect employment, uphold contractual commitments, and safeguard national mineral assets, while reaffirming its support for PMDC’s legal challenge against the lease cancellation before the Lahore High Court.
