Auditor General launches special audit into cancellation of Tuny Pak Mining lease on SIFC's directions

The Auditor General of Pakistan has started a special audit of the decision to cancel a mining lease held by Tuny Pak Mining Company, acting on SIFC directions, as Profit by Pakistan Today reported, citing The News. The Pakistan-China mining venture says it spent roughly Rs 500 million on exploration, digging and related operations. Tuny Pak alleges the lease was cancelled despite that spending and the required mining work being finished, and that it was then unlawfully handed to another firm.

The company also says its exploration licence was cancelled after it paid the relevant fine, blaming political influence and procedural irregularities. The Peshawar High Court set that cancellation aside soon after the announcement, but enforcement of the order fell short, so the case and the licence area remain in litigation. In 2024 the court told the authorities to settle the dispute within two months under the law, yet it stayed unresolved. The provincial government then ordered the lease transferred to another company on March 5, 2026, citing a Mineral Title Committee decision.

SIFC has expressed concern that the long delay has damaged Pakistan's standing as an investment destination and local employment. A two-member audit team has begun reviewing Mines and Minerals Department records, checking whether auction and legal rules were followed and assessing losses to the exchequer. The Director General Mines and Minerals, Khyber Pakhtunkhwa, said a focal person has been designated and full cooperation will be given.