The federal government has approved a major rightsizing and privatization plan aimed at restructuring state-owned entities through a comprehensive reform programme to be implemented within the next 90 days.
The decision forms part of a broader strategy to improve efficiency, reduce costs, and redefine the role of public sector organizations under a unified framework.
PMDC Included in First Phase of Privatization
A significant aspect of the reform package is the inclusion of the Pakistan Mineral Development Corporation (PMDC) in the first phase of privatization.
The government has also placed Saindak Metals Company and ENAR Petrotech Services on the initial list for divestment.
Authorities have directed the Petroleum Division to consult with the Privatization Commission and prepare a detailed divestment plan within 90 days.
The move marks an important development because PMDC remains one of the country’s profitable state-owned enterprises and is the only federal mining corporation operating in Pakistan.
PMDC Owns Major Mining Assets
PMDC manages several important mineral projects across the country.
Its operations cover coal, salt, and metal exploration activities in different provinces. The corporation also owns strategic assets, including the Khewra Salt Mines and the Duddar Lead-Zinc Project.
Despite being commercially successful, PMDC has now become part of the government’s wider privatization strategy.
Profits Continued to Grow
Financially, PMDC has maintained steady growth in recent years.
The corporation recorded revenue of Rs5.27 billion during the fiscal year 2024-25. Its profit after tax has exceeded Rs2.35 billion in recent years.
Apart from generating profits, PMDC contributes taxes and dividends to the national exchequer. The company also continues to expand its mineral exploration activities through several ongoing projects.
Geological Survey of Pakistan to Become Commercial Entity
The reform package also includes changes to the Geological Survey of Pakistan (GSP).
Under the proposal, the organization will transform into a modern and technology-driven institution with a commercial outlook.
The government plans to appoint an independent adviser to develop a sustainable business model for GSP over the next two to three years.
Officials hope the move will help the organization generate revenue and improve operational efficiency.
Downsizing Measures Also Approved
The rightsizing plan proposes major reductions in staffing and administrative expenditures.
Authorities intend to cut the overall workforce and reduce budget allocations to improve efficiency and lower operational costs.
The restructuring aims to make public institutions leaner and financially sustainable.
Central Inspectorate of Mines to Be Abolished
As part of the reforms, the government has decided to abolish the Central Inspectorate of Mines completely.
Meanwhile, the Department of Explosives will continue functioning under a cost-recovery model.
Under this arrangement, the department may charge provincial governments for the services it provides. The move seeks to reduce the financial burden on the federal government while maintaining regulatory oversight.
Broader Reform Strategy
The latest decisions form part of the government’s wider effort to restructure both loss-making and commercially viable public sector entities.
Officials believe the rightsizing and privatization framework will improve governance, attract investment, and enhance the efficiency of state-owned enterprises.
With a 90-day implementation period now in place, key ministries and institutions are expected to begin executing the approved reforms in the coming weeks.