Senior journalist Irfan Khan, in his latest vlog, has brought to light an alleged corruption scandal in Khyber Pakhtunkhwa involving placer gold mining leases, estimated to be worth more than Rs4.9 billion.
According to Khan, the investigation is based on official documents and available evidence aimed at determining which companies were awarded contracts for the exploration and extraction of placer gold along the banks of the Kabul and Indus rivers in Khyber Pakhtunkhwa.
The report also examines why the leases were issued despite a stay order by the Peshawar High Court, why the National Accountability Bureau (NAB) launched an inquiry, the current status of the investigation, the individuals whose roles have come under scrutiny, and the steps taken by the provincial government.
Khan said that following the emergence of the issue, NAB formally initiated an inquiry on July 17, 2025. The anti-graft watchdog sought all relevant records from the Mines and Minerals Department and questioned how lease agreements worth more than Rs4.9 billion were executed despite the High Court’s stay order.
Background
The Khyber Pakhtunkhwa Mines and Minerals Department grants leases for placer gold exploration and extraction through public auctions for blocks located along the Indus and Kabul rivers.
Between 2012 and 2015, a comprehensive geological survey identified areas with high potential for gold deposits. Based on this survey, the government fixed reserve prices for each block before offering them through open bidding.
Which Companies Won the Contracts?
Block A, located in Swabi along the Indus River, was awarded to M/S Blue Pakore Metals (Pvt.) Ltd. for Rs1.25 billion.
Block B, also in Swabi, was awarded to M/S Machko (Pvt.) Ltd. for Rs1.241 billion.
Block C, covering parts of Nowshera and Kohat, was allotted to M/S Himalaya Earth Exploration (Pvt.) Ltd. for Rs1.305 billion.
Block D, located in Kohat, was awarded to M/S Shakardara Minerals (Pvt.) Ltd. for Rs1.111 billion.
The combined value of these four lease agreements exceeded Rs4.9 billion.
How Did the Controversy Begin?
Objections were raised against the leases, prompting the Peshawar High Court to issue a stay order. The central question was how the lease agreements proceeded despite the court’s directive suspending the process.
Subsequently, on July 17, 2025, NAB launched a formal inquiry and sought detailed records from the Mines and Minerals Department.
During its preliminary investigation, NAB identified several alleged irregularities and sought explanations from the department.
According to NAB, one key question is why the authorities ignored the 2015 geological study and the 2022 mineral valuation while determining the reserve prices of the blocks. Investigators are also examining who made those decisions and whether any government officials or other stakeholders were involved.
The inquiry also found that a geological survey completed in February 2022 was suspended in November 2022, potentially affecting the assessment of gold reserves. NAB is investigating why this technical process was halted and who may have benefited.
NAB further alleged that the public advertisements for unsuccessful auctions held in 2020, 2021, and 2022 were inadequate, limiting competition and potentially depriving the government of higher financial returns.
According to the inquiry, the licensing authority issued allotment letters on November 13, 2024, despite lease agreements not being completed within the prescribed timeframe. Investigators are examining under what authority those allotment letters were issued.
Another significant issue raised in the investigation is that some leaseholders were allegedly allowed to continue operations despite the High Court’s stay order. NAB also noted that several leaseholders had not submitted mandatory Environmental Impact Assessment (EIA) reports and mining plans, despite these being legal requirements.
According to NAB documents, more than 1,500 excavators were allegedly operating illegally in the area, raising further concerns about large-scale irregularities in mineral extraction.
The investigation has also examined allegations that certain leases were awarded to benefit preferred individuals, that accurate assessments of mineral resources were overlooked, and that specific interests were prioritized over the public interest.
NAB’s inquiry remains ongoing. Preliminary information suggests that the actual economic value of the lease agreements could be significantly higher than their stated value of Rs4.9 billion.
During the investigation, reports have also emerged that the roles of certain political figures and government officials are being examined. However, NAB has not announced any final findings or established criminal liability against any individual, and the investigation remains in progress.
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