The federal government has approved a comprehensive rightsizing and privatization initiative aimed at restructuring state-owned entities, with implementation expected within the next 90 days.
As part of the first phase of the plan, the Pakistan Mineral Development Corporation (PMDC) has been included in the list of entities slated for privatization, alongside Saindak Metals Company and ENAR Petrotech Services. The Petroleum Division has been directed to coordinate with the Privatization Commission and develop a divestment strategy within the prescribed timeframe.
The reform package also proposes significant changes to the Geological Survey of Pakistan (GSP). Under the new framework, the institution will be transformed into a commercially oriented and technology-driven organization. An independent adviser will be appointed to design a self-sustaining business model, with the transition expected to take place over the next two to three years.
In addition to structural reforms, the plan includes extensive downsizing measures. Administrative expenses are set to be reduced through staff rationalization, lower operational costs, and tighter budget controls across relevant departments.
The government has also decided to abolish the Central Inspectorate of Mines, while the Department of Explosives will continue functioning under a cost-recovery model. Under this approach, provincial governments may be charged for regulatory and inspection services provided by the department.
The inclusion of PMDC in the privatization program has drawn particular attention, given the company’s strong financial performance. As Pakistan’s only federal mining corporation, PMDC manages operations in coal, salt, and mineral exploration across several provinces. Its portfolio includes notable assets such as the Khewra Salt Mines and the Duddar Lead-Zinc Project.
Despite being a profitable enterprise, PMDC has been brought under the broader reform framework. The company recorded revenues of approximately Rs. 5.27 billion in FY2024-25, while profit after tax exceeded Rs. 2.35 billion in recent years. It has consistently contributed dividends and tax revenues to the national exchequer and continues to expand its mineral exploration activities.
The latest move reflects the government’s wider strategy to improve efficiency, reduce the burden of public-sector operations, and restructure both loss-making and commercially viable state-owned enterprises under a unified rightsizing and privatization agenda.
