Mine lessees to be bound to start work in a year

Minister suggests amendments may be introduced to law soon

PESHAWAR: In a bid to spur expeditious development in the mining sector, the provincial government is planning to bring about an amendment in the law which will bind contractors and leaseholders to start work on sites within a year of being granted the lease.

This was stated by the Khyber-Pakhtunkhwa (K-P) Mines and Minerals Minister Dr Amjad Ali on Wednesday while addressing participants of Mining Lease Offer Letters distribution ceremony in Peshawar.

The minister said that an amendment will be made to the K-P Mineral Sector Governance act 2017. He added that if work on sites did not start within a year of getting their leases, the mines and minerals department could issue notices to contractors for non-compliance, and could also cease their lease.

Dr Ali added that the incumbent government is working to eradicate corruption and bring transparency in the system. He added that the results of their reforms in the department have started appearing in the form of a 100 per cent increase in revenue.

He asked contractors to contact the department in case anyone tries to pressurise them for their legal work or ask for ‘favours’. Based on the complaints, he said that the department will take action against such individuals and officials.

The minister added that eradicating corruption and ending illegal mining was their main mission along with making it easier to do business in the province.

Mines and Minerals Secretary Nazar Ali Shah said that for better facilitation, their department is introducing an online system from next year. He further clarified that contractors are only bound to pay a royalty to the government and in case of any illegal demands made by officials, he encouraged mine owners to approach the relevant section of the department.

Shah further urged contractors to provide a safe and healthy working environment for mine workers, adding that they should use mines and minerals with the utmost care, and not waste precious assets of the province.

Reforms on ease of doing business

In a separate statement, K-P Finance Minister Taimur Jhagra on Wednesday said that Pakistan is one of the top global improvers in the rankings for ease of doing business this year owing to its hard work on reforms, but it was a challenging task.

However, he admitted that Pakistan is nowhere near as business-friendly as it needs to be.

“There is much red tape to eliminate, and in K-P, doing this is an important part of our agenda,” he stated.

As an example, Jhagra noted that in recent meetings with restaurant owners, they discovered that some 14 different taxes, fees, and inspection points are applicable and that no one has ever thought of simplifying the process.

“The culture of government departments, which deal with these [establishments], begins with what is convenient for them, rather than for the end-user,” he said.

He added that they need to not only change fees, rules, and processes, but also the mindset and the behaviour of the government.

“That is our real challenge,” Jhagra said, adding, “Our government is serious about increasing revenue, but we are equally serious about making business easier for those who pay.”

He added that an ease-of-doing-business-taskforce will work with any sector that can help streamline business processes.

Published in The Express Tribune, October 17^th, 2019.