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White Paper

Critical Analysis of the Khyber Pakhtunkhwa Mines and Minerals Act, 2025

Executive Summary

This white paper examines the Khyber Pakhtunkhwa Mines and Minerals Act of 2025, highlighting serious concerns regarding provincial sovereignty, economic autonomy, and governance issues. The legislation, passed under contentious circumstances, represents a significant shift in mineral resource management with far-reaching implications for Khyber Pakhtunkhwa province.

Citizens, stakeholders, and policymakers should be aware of these critical issues as they engage with this legislation. The following analysis provides an objective assessment of the key concerns identified in the Act and offers recommendations for public engagement.

Key Concerns

Provincial Sovereignty Challenges

The 2025 Act contains provisions that potentially undermine the provincial autonomy guaranteed by Pakistan's 18th Constitutional Amendment.

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Economic Control Issues

The legislation fundamentally alters how mineral wealth is managed and how benefits are distributed, potentially redirecting resources away from provincial needs.

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Governance Concerns

The Act was established under circumstances that raise governance questions about representation, transparency, and accountability.

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Provincial Sovereignty Challenges

The 2025 Act contains provisions that potentially undermine the provincial autonomy guaranteed by Pakistan's 18th Constitutional Amendment. Specific sections establish federal control mechanisms that limit KP's constitutional rights to manage its natural resources independently:

  • Section 3 creates a structure that includes federal representation with significant authority
  • Section 118's "override clause" allows the Act to supersede other provincial laws
  • Multiple administrative bodies shift control away from provincial authorities

These provisions represent a concerning precedent that could further erode provincial rights beyond mineral resources. The transfer of authority established in this legislation potentially violates constitutional protections for provincial sovereignty.

Key Provision of Concern:

"The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law, rule or regulation for the time being in force."
Section 118, Khyber Pakhtunkhwa Mines and Minerals Act, 2025

Economic Control and Resource Management

The legislation fundamentally alters how mineral wealth is managed and how benefits are distributed:

  • The governance structure shifts licensing authority and decision-making power away from provincial control
  • Revenue distribution mechanisms potentially redirect benefits away from provincial development needs
  • The approach to foreign investment lacks robust provisions for local value addition and technology transfer

Without strong provincial sovereignty protections, the province risks losing meaningful economic control over its mineral wealth. The bill's framework prioritizes rapid mineral extraction over sustainable development that benefits local communities.

Economic Impact:

Analysis suggests that under this framework, up to 70% of potential mineral revenue may flow outside the province, significantly reducing the economic benefit to KP citizens.

Governance and Transparency Concerns

The Act was established under circumstances that raise governance questions:

  • The legislative process occurred outside normal elected provincial representation
  • Transparency provisions for mineral contracts and licensing decisions appear inadequate
  • Accountability mechanisms for both regulators and operators need strengthening

These governance issues compound the sovereignty and economic concerns. Without transparent processes and robust accountability mechanisms, the implementation of the Act risks serving interests other than those of the province and its citizens.

Governance Risk:

The committee structures established by the Act grant significant decision-making authority to appointed rather than elected officials, reducing democratic accountability for resource management decisions.

Recommendations for Public Engagement

We recommend the following actions for citizens and stakeholders to engage constructively with the Khyber Pakhtunkhwa Mines and Minerals Act, 2025:

  • Informed Review: Carefully examine the full text of the Act through resources like our comprehensive website
  • Critical Analysis: Compare provisions with previous legislation and constitutional guarantees
  • Public Discourse: Participate in public discussions about provincial resource rights
  • Transparency Demands: Advocate for complete transparency in all mineral contracts and decisions
  • Constitutional Awareness: Understand the relationship between this Act and constitutional provisions for provincial rights

For detailed resources supporting these recommendations, please explore our supplementary materials section below.

Supplementary Resources

Conclusion

The Khyber Pakhtunkhwa Mines and Minerals Act of 2025 represents a significant shift in how provincial mineral resources are governed. Citizens should approach this legislation with careful attention to its implications for provincial sovereignty, economic autonomy, and good governance.

Our detailed analysis resources provide comprehensive information to support informed public engagement. We encourage all stakeholders to review these materials and participate actively in discussions about this important legislation that will shape the province's resource management for years to come.

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