The Khyber Pakhtunkhwa (KP) Mines and Minerals Bill, 2025, has sparked intense debate, with critics, including PTI leaders and mining stakeholders, calling for its immediate review.
The proposed law aims to overhaul the province’s mining sector but has faced backlash over fears of federal overreach and unfair policies against small-scale miners.
Why Is the KP Mines and Minerals Bill 2025 Controversial?
1. Federal Influence in a Provincial Matter
The 18th Constitutional Amendment grants provinces full control over their natural resources.
However, the new bill includes clauses allowing federal intervention through the Mineral Investment Facilitation Authority (MIFA) and the Federal Mineral Wing.
- Critics argue this undermines provincial autonomy.
- Proponents claim federal coordination ensures better regulation and investment.
2. Joint Ventures Mandatory for Large-Scale Mining
The bill requires large-scale mining (LSM) investors (with over Rs. 500 million capital) to form joint ventures with government-owned companies.
- Supporters say this ensures revenue sharing and prevents exploitation.
- Opponents fear it discourages private investment and benefits only a few.
3. Unclear Benefits for Local Communities
While the bill mentions landowner rights and training programs, it does not guarantee profit-sharing for locals affected by mining.
4. High Financial Barriers for Small Miners
Small-scale miners must provide a Rs. 25 million bank guarantee, which many say is too expensive and will force them out of business.
Pros of the KP Mines and Minerals Bill 2025
✅ Better Regulation – Aims to streamline mining operations and reduce illegal activities.
✅ Increased Investment – Encourages large-scale projects, boosting economic growth.
✅ Government Revenue – Joint ventures ensure the province benefits financially.
✅ Mineral Classification – Clear categorization of minerals (18 groups) for better management.
Cons of the KP Mines and Minerals Bill 2025
❌ Threat to Small Miners – High financial requirements may push out local businesses.
❌ Federal Overreach – Goes against the 18th Amendment’s spirit of provincial autonomy.
❌ Lack of Local Profit-Sharing – No clear benefits for communities near mining sites.
❌ Unfair Policies – Favors big corporations over small-scale miners who contribute significantly to KP’s economy.
Public and Political Reaction
- Aleema Khan (PTI leader) demanded that the bill be put on hold until Imran Khan reviews it.
- Former Minister Shakeel Ahmad warned the bill could harm future generations.
- Frontier Mine Owners Association called it an “economic assault” on KP’s mining sector.
Government’s Response
Chief Minister Ali Amin Gandapur dismissed “misconceptions,” saying the bill will modernize KP’s mining sector. However, critics remain unsatisfied, demanding more transparency and provincial control.
Final Verdict
The KP Mines and Minerals Bill 2025 has potential benefits but needs revisions to address small miners’ concerns, federal interference, and local community rights.
If implemented fairly, it could boost KP’s economy—but if mishandled, it may harm thousands of livelihoods.