Gold Extraction Controversy: KP's Alleged Fiscal Losses Amid NAB Probe

Pakistan's NAB uncovers alleged irregularities in KP's placer gold operations, warning of potential fiscal losses. Leaseholders reportedly gain billions, while provincial earnings are minimal. Concerns include sublet gold blocks, halted geological projects, and legal lapses. KP's Chief Minister defends the auctions, claiming procedural transparency.

Pakistan's National Accountability Bureau (NAB) has raised alarms over alleged misconduct in the auction and exploitation of placer gold along the Indus and Kabul rivers. Accusations suggest Khyber Pakhtunkhwa's province is potentially losing trillions, with leaseholders reportedly subletting gold blocks and profiting significantly, Geo News reported.

Geo News highlighted findings of an NAB inquiry, revealing the deliberate underestimation of gold block reserve prices, contrary to a 2015 geological study. The inquiry also outlined concerns about a stalled geological mapping project in 2022, arousing suspicions of concealment. KP Chief Minister Ali Amin Gandapur contests the allegations, citing record-level auctions and legal adherence.

Despite the Chief Minister's assertions, NAB cited multiple violations, including the absence of environmental assessments and non-compliance with mandatory NOCs. It further identified safety breaches, such as hazardous mercury usage and unskilled labor employment. Over 1,500 excavators reportedly operate unlawfully, highlighting private sector gains versus modest provincial returns.

(With inputs from agencies.)