The Economic Cooperation and Development Forum (ECDF) for the merged areas have submitted its recommendations for the development of mineral sector to the concerned authorities of the Khyber Pakhtunkhwa government.

ECDF is one of the major components of USAID funded project being implemented by the UNDP as part of the FATA Economic Revitalization Program (FERP) under the umbrella of FATA Transition & Recovery Program (FTRP), aimed at provision of sustainable livelihood opportunities leading to long-term economic growth of the Newly Merged Districts of the erstwhile FATA.

Small and Medium Enterprises Development Authority (SMEDA) is providing technical support to UNDP in implementation of two components i.e. Business Development Grants & Economic Cooperation and Development Forum (ECDF) of UNDP FERP project in the Newly Merged Districts. The forum is comprised of 50 experts from relevant public sector departments, think tanks, donors, civil society organizations, academia, banks, chambers and private sector b has been further sub-divided into six thematic groups and business sectors has recommended four initiatives to the provincial government for the development of mineral sector to encourage local investment and tapping the huge mineral resources of the area.

The recommended initiatives for the mineral sectors recommended in light of consultations with relevant stakeholders including the extension of KP Mineral Governance Act, 2017, introduction of mineral specific magistracy system, digitalization of mine leases allotment process and declaring the ownership of the KP government on mineral resources in the newly merged districts.

The recommendation said that the most critical issue faced by the mine owners during lease allotment in the NMDs was the obtaining of No Objection Certificate (NOC) from the district administration that was based on community meeting and in case of objection from any community members, the investor cannot obtain lease license.

The stakeholders were of the opinion that lease title allotment process in the KP as per the new Mineral Governance Act, 2017 is much more easy and transparent. Therefore, it should be extended to the tribal districts to encourage investment. Similarly, the introduction of mineral specific magistracy system for NMDs would help resolve disputes between investors and local community over the surface rent and with relevant line departments over royalty, excise duties, penalties and etc, because these issues also results in closure of existing mining activities or litigation in general courts.

In absence of mechanism for settlements of mineral related disputes, these court cases continue for years. So in view of the aforementioned facts, ECDF recommends the formulation of an independent Mineral Magistracy System/Tribunal for resolution of mineral mining related disputes.

The step will not only help in quick resolution of mineral related disputes, rather will also encourage new investments in the mining sector of the merged areas.

Another initiative recommended by the ECDF is the digitalization of mine leases allotment process to resolve the issue of concern for the relevant public sector departments and private investors.

During consultations, the private sector has put much emphasis on digitalization of the entire process and procedures related to investment in the mining sector, which they said could be achieved through development of complete 'Digital Mine Lease Allotment Program' to bring ease in lease allotment process and accelerate investment in mineral sector.

The fourth recommendation made on the unanimous demand of the stakeholders is the extension of all mineral sector related laws and policies ensuring that minerals in the NMDs belong to the provincial government of Khyber Pakhtunkhwa. The lack of such laws is stumbling block in the promotion of mineral sector investment in the area.

The ECDF says that the implementation of the proposed initiatives will largely result in triggering private sector investment in mineral sector, contribute towards ease of doing business and employment generation for the local inhabitants of the newly merged districts.

Both ECDF and SMEDA have assured full support in implementation of these initiatives and in case of requirement the provision of any further information to the provincial government.

Copyright Business Recorder, 2019