PMDC Workers Warn Warcha Lease Dispute Could Jeopardize $200 Million Foreign Investment
The Pakistan Mineral Development Corporation (PMDC) union warns that a legal dispute over the Warcha rock salt mining lease could jeopardize a $200 million foreign investment. The case is currently pending in the Lahore High Court, with concerns raised about the impact on employment and investor confidence.
Why it matters
The dispute underscores the risks that regulatory and legal instability pose to foreign direct investment and economic development in Pakistan's mineral sector.
ISLAMABAD: The collective bargaining agent (CBA) of the state-owned Pakistan Mineral Development Corporation (PMDC) has expressed concern that the dispute over the Warcha rock salt mining lease could place a proposed $200 million foreign investment at risk, threaten employment opportunities, and create uncertainty for Pakistan’s mineral sector.
Addressing a news conference, Secretary General of the All Pakistan CBA Unions of PMDC, Rai Mazhar Iqbal Kharal, said the corporation’s mining lease had been lawfully renewed and remained valid until March 2032. He alleged that the Punjab government’s decision to cancel the lease and subsequently auction the same mining area to a private company had raised legal and commercial questions. The matter is currently pending before the Lahore High Court.
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