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Initiatives & Achievements 28.02.2024 (download presentation)

The following initiatives have been taken which will not only accrue major economic / financial benefits and growth but will also result in transparency, fairness, provision of equal opportunities, industrialization, realisation of optimum potential and employment generation:

  • Exceeded the Revenue Collection Target:

Despite slow-down in economy, very low consumption of minerals in Industry due to less demand, more than Rs 14 billion revenue collected against a target of Rs 12 billion.

  • De-Notification of Skewed Rock Salt Policies done:

From July 2020 till date, 56 exploration licenses (32 allotted & 24 at offer stage) were awarded for three years over an area of approximately 100,000 acres under Large Scale Mining, on applications under rule 24 of the rules ibid, with the objective of installation of Salt Based Industrial Units. Later on, “Rock Salt Policy” & "Amended Rock Salt Policy" were approved by the then Cabinet and notified on 18.08.2022 & 06.01.2023 respectively. Through these twin policies, the mandatory condition of installation of the Industrial units was waived off and past licensees / lessees were allowed to produce and sell Rock Salt of any quality or quantity in the domestic or international markets as it pleases them. Basically through these policies, the terms & Conditions of 56 exploration licenses were changed retrospectively, giving illegal and undue favor to them To save the public exchequer from massive loss, a summary for CM Punjab was initiated by the Administrative Department for placing the matter before Cabinet for revocation of above discussed Rock Salt Policies. As per approval of CM Punjab, the matter was considered and approved in 9th Cabinet Meeting held on 11.03.2022. After receipt of minutes of meeting of Cabinet, the subject skewed Rock Salt Policies have been withdrawn / De-notified vide notification dated 24.03.2023. 

  • Investment Proposal

A proposal for Saudi Company, Maa’dan, has been shared with the Federal Board of Investment worth 1.3 billion $ for establishment of a Steel Mill at Chiniot. International level feasibility, estimations, business process etc stands completed. This project will be very useful for import substitution, ensuring best utilization of the 250 million tons of iron ore. Interactions started with Frontier Works Organization (FWO) & Fauji Foundation also. 

  • Open Competition Instead of Doling Out Grants through Applications:

Some minerals were being granted through applications instead of open auction. Applications for grant of prospecting licenses were pending since the year 2001. Grant of some minerals through application involved discretion & malpractices. Issued Order and stopped all awards of contracts through applications and, instead, started awarding contracts through Open Competitions to the highest bidder only. By this action, hundreds of zones which were lying idle for decades are being put into open auctions, injecting billions of rupees, depending upon the bids received, into state exchequer.

  • Zero Tolerance Against Corrupt Practices:

Removed corrupt elements from key posts and posted upright officers. Effectively stopped system of “Commissions” at the approval level. Sent references to ACE, and started departmental action, against illegal orders passed by previous Secretaries/ DGs for refund of securities & bid money approx. Rs.660 Million to defaulter contractors. Filed writ petitions and obtained stay order against illegal orders of previous authorities for refund of securities approx. Rs.300 Million. Special Audit planned for all leases in last 05 years will unearth embezzlements.

  • Issued permission for Rs 4 billion per annum as a result of increase in Royalty rates for Limestone, Argillaceous Clay and Rock salt, without any significant impact on prices of the end product.
  • Working on Provincialization of Excise Duty Act and amendment to increase the outrageously low excise duty rate i.e. Rs 5 per ton for all minerals including Gold and precious stones etc. This will also increase revenue worth a billion of rupees on yearly basis.
  • Around 29,000 acres free area has been identified bearing potential rock salt deposits. Conservatively estimated approx Rs 3 Billion Bid money and yearly payment of royalty is expected if licenses of these areas are auctioned. 
  • Identified Unutilized Areas, Approved Terms & Conditions and got conducted auction of limestone blocks in District Attock, lying vacant since long, against a cumulative bid of Rs. 1.5 Billion and yearly royalty. The exercise continues. 
  • Due to inundation by underground water dozens of valuable Sandstone mines have lost their value in Sargodha. A feasibility study to find the solution has been got conducted which has emphatically advised to construct a drain to drain out water to the nearest channel. After completion of this scheme, mine sites would regain their value and would fetch extra Rs 02 billions every year for next 10 years.
  • Conducting feasibility of Placer Gold through Geological Survey of Pakistan (GSP) at River Indus District Attock which has shown encouraging results. After submission of final report, zones for excavation of Placer Gold will be auctioned through Open Auction earning billions of rupees of bid money and yearly payment of royalty. Moreover, Feasibility study for Potential Evaluation of Coal, Iron Ore, Limestone and other industrial minerals in Koh-e-Suleman Range, D.G.Khan, Division is being done to increase the extent of area for future auctions.
  • Automation/ Digitization, Real time Monitoring for Ease of Doing Business: Functionalized the first version of online Mineral Cadaster System. Database for areas granted & vacant for exploration or mining on GIS. Type of license granted, start and end dates of contracts etc. Mineral wise concession, district/ division wise data. Working on online submission of applications and fees etc. Working on e-auction module to curb cartelization and pooling. Registration and geo tagging of Leases / Mines. Mines Inspection Module. Application for Field Officers to digitize the inspection Regime. Digitization of Payments related to Challan. Accident and Incident Report Submission Process. Overall Inspectors Grading Module and Tour Roaster Module. Enforcement of Terms & Conditions and safety measures.
  • Strenuous efforts to break regional monopolies: Vacation of Stay Order worth Rs: 3.5 billion against auctions in Sargodha. Secrecy w.r.t. registered bidders to avoid the chances of pooling . Some exemplary auctions held due to which cumulative bids of 4.4 Billion have been received against previous cumulative bids of Rs.1.71 Billion. Preparation of Robust Business Plan, and use PUNJMIN in vacant blocks worth billions of rupees to break regional monopolies, is underway. Started ground work for e-auction regime through a development project.
  • Infrastructure development for boosting Investor confidence: Construction and strengthening of Rescue offices near the mines, Solarization of facilities, Workers’ welfare schemes etc.
  • Reviewing Laws/ Rules: for removing ambiguities and making them more elaborate, transparent, competitive and investment friendly.
  • Devised detailed SOPs for effectively fighting court cases and preventing losses. Devised SOPs for effectively curbing theft of minerals and ensuring recovery of resultant loss from the culprits. 
  • Approved NOCs for more than 250 zones across the province which were pending since long, so that the zones could be auctioned.
  • Process to recover longstanding recoveries amounting to approx. Rs 7 billion started.
  • Identified huge loss to exchequer due to unauthorized mining of ordinary sand in canals under Irrigation Department during closure period. Summary is being prepared to allow Mines Department to auction excavation rights of ordinary sand from canals which would on the one hand stop incurrence of expenditure from public exchequer by Irrigation Deptt and on the other result into income of billions of rupees, on yearly basis, for exchequer.
  • Revenue potential on yearly basis of all other vacant areas of minerals highlighted. Finalization of Terms & Conditions, reserve prices and NOCs underway, which would fetch extra billions of rupees and royalty on yearly basis.
  • Issued Order and stopped the corrupt practice of initiating process for “extension of zones” near the dates of new auction; and, instead, started auctioning the same to get current higher rates.
  • Initiated effort in the Department to get Geographical Indication (GI) for Himalayan Pink Rock salt for Punjab, Pakistan.
  • The full impact of above reforms will be felt in next financial year as desired by the Chief Minister, Punjab and more than double target could be achieved in a year.