NAB objections cited in an October 2024 report raise questions about the valuation, allocation and monitoring of four gold mining blocks along the Indus River in Khyber Pakhtunkhwa.
PESHAWAR: Gold mining contracts worth approximately Rs4.93 billion in Khyber Pakhtunkhwa have come under scrutiny over alleged irregularities in the auction process, valuation of mineral reserves, compliance with mining regulations and the monitoring of extraction activities.
The National Accountability Bureau (NAB) has raised objections to aspects of the contracts awarded for four placer gold mining blocks along the Indus River during the Pakistan Tehreek-e-Insaf (PTI) government’s tenure, according to reports published in 2025. The concerns have prompted questions about whether the province received a fair return from its mineral resources.
Four gold mining blocks auctioned for Rs4.93 billion
According to figures reported in October 2024, four blocks were auctioned for a combined amount of approximately Rs4.93 billion.
The reported contracts were awarded as follows:
Block A: Globa Core Private Limited — Rs1.25 billion.
Block B: Majco Private Limited — Rs1.261 billion.
Block C: Himalaya Earth Private Limited — Rs1.305 billion.
Block D: Shakardara Minerals Private Limited — Rs1.111 billion.
The successful bids were publicly announced by provincial government representatives in October 2024.
Questions over valuation and auction procedures
According to reports citing official documents, NAB raised concerns about the determination of reserve prices without an adequate assessment of the gold deposits, the treatment of earlier geological studies and alleged violations of the Mineral Auction Rules 2022.
Other reported concerns included the issuance of allotment letters despite questions over the completion of agreements within the stipulated 14-day period. The reported suspension of geological mapping, which began in February 2022 and was halted in November 2023, also drew scrutiny.
In August 2025, The News reported that the provincial government had ordered an inquiry into the auction process following the objections. The proposed inquiry was to examine reserve-price calculations, operational violations, environmental compliance, subleasing and the submission of production and sales records.
Allegations of illegal mining and revenue losses
The concerns extended beyond the original auctions to activities at the mining sites. Reports cited allegations that mining continued despite legal restrictions and that some operators conducted extraction without the required environmental approvals or mining plans.
Questions were also raised about the alleged use of more than 1,500 excavators, payments reportedly collected from machine operators and unauthorised subleasing arrangements. Figures cited in reports suggested that individual operators were charged between Rs500,000 and Rs700,000 per excavator each week, while estimated weekly earnings from alleged unauthorised operations ranged from Rs750 million to more than Rs1 billion. These figures are allegations and estimates, not independently established findings of criminal liability.
The absence of complete production and sales records has also raised questions about the volume of gold extracted, the revenue generated and the amounts received by the provincial government.
Former chief minister defends the auctions
Former Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur defended the auction process, maintaining that his government secured higher prices for the blocks than in previous attempts and fulfilled the applicable legal requirements. His position was reported by The News in August 2025.
The case raises important questions about the transparency of mineral auctions, the effectiveness of regulatory oversight and the protection of public revenue. Establishing responsibility for any violations will depend on documentary evidence, the findings of the relevant inquiries and any subsequent legal proceedings.
 
 
 
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