ISLAMABAD – Pakistan’s energy and mining sectors are set to witness shake-up amid rightsizing plan targeting the country’s biggest state-owned enterprises, including Pakistan Mineral Development Corporation (PMDC). While officials claim the reforms aim to cut costs and improve efficiency, the decision to put profitable organizations like PMDC on the block is already raising eyebrows across industry circles.
The government approved major overhaul of institutions and state-owned enterprises under Petroleum Division, setting stage for massive downsizing, departmental closures, and the privatisation of several key public sector entities.
The sweeping reforms were approved by federal cabinet on recommendations of Committee on Rightsizing of the Federal Government (Phases III and IV), dated March 26, 2026. Implementation plans have now been ordered across ministries, with most changes expected to be rolled out within just 90 days—signalling a rapid and uncompromising execution phase.
At heart of restructuring is dramatic transformation of Geological Survey of Pakistan (GSP), which is being reimagined as a market-driven, technology-oriented organisation. Officials have been directed to hire an independent strategic adviser to redesign its business model, with the aim of making it financially self-sustaining within two to three years.
The overhaul comes with steep cuts as plan calls for 50–60% reduction in administrative staff, a further 20–30% cut in remaining workforce, and a 30–40% slash in budget allocations, showing scale of austerity being pushed through the sector.
Central Inspectorate of Mines is set to be completely wound up, with all posts abolished within 90 days. Department of Explosives, however, will continue operations but will be shifted towards a cost-recovery model, potentially charging provincial governments for services previously provided as part of routine regulatory functions.
The most controversial move in package is decision to privatise PMDC in the first phase of reforms, alongside Saindak Metals Private Limited and ENAR Petrotech Services (Pvt) Ltd. The Petroleum Division has been tasked with seeking input from the Privatisation Commission and preparing a formal divestment roadmap within 90 days.
The proposal sparked concern and debate within industry circles, given PMDC’s strong financial performance and its strategic position as Pakistan’s only federally owned mining company.
With over five decades of operations, PMDC currently manages 19 mining ventures across the country, including salt, coal, joint ventures, and exploration projects, spread over more than 61,000 acres of mining leases and roughly 247,000 acres of exploration territory. It also holds substantial commercial and residential land assets.
The corporation operates some of the country’s most significant mineral sites, including the historic Khewra Salt Mines, the Sor-Range coal mine in Quetta, and the Duddar Lead-Zinc project in Lasbela.
Despite privatisation push, PMDC’s financial performance has remained strong. Revenue has surged from Rs2.8 billion in FY2021–22 to Rs5.27 billion in FY2024–25. Profit after tax has climbed from Rs800 million to over Rs2.35 billion in the same period, peaking at Rs2.6 billion in FY2023–24.
At the time of proposed privatisation, PMDC was in the middle of an ambitious expansion drive involving 17 new projects. The company also attracted significant foreign investor interest, including a proposed $200 million investment from a US-based firm to set up a modern pink rock salt grinding and export facility.
The rightsizing framework also proposes placing major energy companies, including Sui Northern Gas Pipelines Limited (SNGPL), Sui Southern Gas Company Limited (SSGCL), and Pakistan State Oil (PSO) on the privatisation list, subject to further review by the Cabinet Committee on State-Owned Enterprises.
Meanwhile, strategic upstream entities such as Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Government Holdings (Private) Limited (GHPL), Pakistan LNG Limited (PLL), and Interstate Gas Systems Limited (ISGSL) are being considered for transfer to a Sovereign Wealth Fund structure.
