PUNJAB MINERAL DEVELOPMENT CORPORATION ACT, 1975

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THE PUNJAB MINERAL DEVELOPMENT CORPORATION 
ACT, 1975 
(XXXIII of 1975) 
CONTENTS 
1. Short title, extent and commencement 
CHAPTER I 
PRELIMINARY 
2. Definitions 
CHAPTER II 
ESTABLISHMENT, MANAGEMENT AND ORGANISATION OF THE 
CORPORATION 
3. Establishment and incorporation 
4. Management and administration 
5. Board 
6. Managing Director 
7. Disqualification of Managing Director 
8. Removal of Managing Director and Directors 
9. Resignation by or removal of Managing Director or Directors 
10. Appointment of Officers 
11. Declaration of fidelity and secrecy 
12. Financial and technical advisory committees 
13. Immunity of the corporation and its employees 
14. Delegation of powers 
15. Meeting of Board 
16. Submission of returns, statements etc. to Government 
17. Power of Board to associate other persons 
CHAPTER III 
FUNCTIONS OF THE CORPORATION 
18. Business which the Corporation shall transact 
 
CHAPTER IV 
FINANCE 
19. Corporation to be deemed a local authority 
20. Loans 
21. Corporation Fund 
22. Custody and investment of Corporation Fund 
23. Maintenance of accounts 
24. Audit of Accounts 
25. Reports to be furnished to Government 
26. Profits to be paid to Government 
CHAPTER V 
MISCELLANEOUS 
27. Rules 
28. Regulations 
29. Rules and Regulations to be published in the official Gazette 
30. Winding up and its consequences 
31. Repeal 
 
 
TEXT 
1
THE PUNJAB MINERAL DEVELOPMENT CORPORATION ACT, 1975 
(XXXIII of 1975) 
[3rd April, 1975] 
An 
Act 
to establish a Corporation for the purpose of promoting mineral development in the 
Province of the Punjab. 
Preamble.– WHEREAS it is expedient to establish a Corporation for the purpose of 
promoting mineral development in the Province of the Punjab; 
 It is hereby enacted as follows:– 
1. Short title, extent and commencement .– (1) This Act may be called the 
Punjab Mineral Development Corporation Act, 1975. 
 (2) It extends to the whole of the Province of the Punjab. 
 (3) It shall come into force at once. 
 (4) It shall apply to all minerals, except mineral oil, natural gas and mineral 
resources necessary for the generation of nuclear energy. 
CHAPTER I 
PRELIMINARY 
2. Definitions.– In this Act, unless there is anything repugnant in the subject or 
context– 
(a) “Board” means the Board of Directors of the Corporation; 
(b) “Chairman” means the Chairman of the Corporation: 
(c) “Corporation” means the Punjab Mineral Development Corporation 
established under this Act; 
(d) “Director” means a Director of the Corporation; 
(e) “Government” means Government of the Punjab; 
(f) “prescribed” means prescribed by rules; 
(g) “regulations” means regulations made under this Act; 
(h) “rules” means rules made under this Act; and 
(i) “Specified” means specified by regulations. 
                                                 
1This Act was passed by the Punjab Assembly on 5th March, 1975; assented to by the Governor of the Punjab on 3rd April, 1975; 
and, published in the Punjab Gazette (Extraordinary), dated 3rd April, 1975, pages 283-294. 
 
CHAPTER II 
ESTABLISHMENT, MANAGEMENT AND ORGANISATION OF THE 
CORPORATION 
3. Establishment and incorporation .– (1) As soon as may be after the 
commencement of this Act, Government shall establish a Corporation to be called 
the Punjab Mineral Development Corporation. 
 (2) The Corporation shall be a body corporate having perpetual 
succession and a common seal with power, subject to the provisions of this Act, to 
acquire and hold property, both movable and immovabl e and shall sue and be sued 
by the said name. 
 (3) The Head Office of the Corporation shall be at Lahore. 
4. Management and administration .– (1) The general direction and 
administration of the Corporation and its affairs shall vest in the Board which may 
exercise all powers and do all acts which may be exercised or done by the 
Corporation. 
 (2) The Board in discharging its functions shall act on commercial and 
national considerations and shall follow such directions as Government may give 
from time to time. 
 (3) If the Board fails to obey any directions mentioned in sub -section (2) or 
if the Board, the Managing Director or any Director contravenes the provisions of this 
Act or of the rules or regulations made under it or if the Managing Director or any 
Director is found guilty of misconduct, Government may remove all or any of the 
Directors or the Managing Director, as the case may be, and notwithstanding 
anything to the contrary contained in sections 5 and 6 appoint temporarily other 
persons in their place t o be the Directors or the Managing Director, as the case may 
be, until new Directors are appointed in accordance with the provisions of section 5 
or a new Managing Director is appointed in accordance with the provisions of section 
6; provided that only the  provisions of clauses (a), (b) and (e) of sub -section (2) of 
section 6 shall apply to the person appointed temporarily under this sub-section to be 
the Managing Director. 
 (4) Government may suspend the execution of any such resolution or 
order of the Boa rd as in the opinion of Government contravenes the provisions of 
this Act, the rules, the regulations framed under this Act, or, the directions mentioned 
in sub -section (2), or prohibit the doing of any act which is to be done or is being 
done in pursuance  of such resolution or order, or, if the act has been accomplished   
order its rectification in such manner as may be directed. 
5. Board.– (1) The Board shall consist of a Chairman, a Managing Direct or and 
the following Directors:– 
 (i) The Chairman, Planning and Development Board of Government; 
 
2
[(ii) Secretary to the Government, Mines and Minerals Department, or his 
nominee not below the rank of a Deputy Secretary; and] 
(iii) Secretary to the Government, Finance Department, or his nominee not 
below the rank of a Deputy Secretary. 
 (2) The Chairman shall be appointed by Government. 
 (3) Government may, by notification in the official Gazette, alter the 
membership of the Board or increase or decrease the number of Directors. 
6. Managing Director .– (1) The M anaging Director shall be appointed by 
Government. 
 (2) The Managing Director shall– 
(a) be a whole-time officer of the Corporation; 
(b) perform such duties as may be specified or as may be assigned to him; 
(c) hold office as Managing Director for a term of three years and shall 
remain in office as Managing Director thereafter for three months or 
until a successor in that office is appointed, whichever is earlier; 
(d) receive such salary and allowances as Government may determine; 
(e) divest himself of any directorship of, or ot her interest held by him in, 
any other corporation, company or concern; and 
(f) not become a director of, or acquire any share or other interest in any 
other Corporation, company or concern during his term of office: 
Provided that nothing in this clause shall prevent the Managing Director from 
holding shares in any public company acquired by him before his appointment but he 
shall declare such shares to Government at the time of his appointment: 
Provided further that Government may, in exceptional circumstances , where it 
considers necessary to do so in the public interest, exempt by a special order any 
person who has been appointed or is about to be appointed as Managing Director 
from the application of this clause. 
 (3) Nothing in this section shall preclude Go vernment from extending the 
term of office of a Managing Director for such period as Government may determine. 
7. Disqualification of Managing Director .– No person shall be appointed as 
Managing Director or Director or, as the case may be, shall continue t o be a 
Managing Director or Director who– 
(a) is, or at any time has been convicted of any offence involving moral 
turpitude; 
(b) is, or at any time has been disqualified for appo intment in, or dismissed 
from, Government service; 
(c) is, or at any time has been adjudged insolvent; 
(d) is found a lunatic or becomes of unsound mind; 
                                                 
2Substituted by the Punjab Minerals Development Corporation (Amendment) Act 2010 (I of 2010); and published in the Punjab 
Gazette (Extraordinary), dated 15.2.2010, pages 2093-2094, s.2. 
 
(e) is not a citizen of Pakistan; or 
(f) is less than twenty five years of age. 
8. Removal of Managing Director and Directors .– Government may, by order 
in writing, remove the Managing Director or a Dire ctor, as the case may be, after 
giving him an opportunity of being heard if he– 
(a) refuses or fails to discharge or becomes, in the opinion of Government , 
incapable of discharging his responsibilities under this Act; 
(b) has, in the opinion of Government, abused his position as Managing 
Director or Director; or 
(c) has knowingly acquired or continued to hold, without the permission in 
writing of Government directly or indirectly, or through a partner any 
share or interest in any contract or employment with, or on behalf of the 
Corporation or in any property, which he knows is likely to benefit or 
has benefited him as a result of the operations of the Corporation. 
9. Resignation by or removal of Managing Director or Directors .– 
Notwithstanding anything contained in this  Act, the Managing Director or a Director, 
at any time before the expiry of his term and upon three month’s notice, resign his 
office, or upon similar notice, be removed from office by Government without 
assigning any reason: 
 Provided that Government may,  upon payment of three month’s salary and 
allowances in lieu of the notice, remove the Managing Director or a Director 
immediately without assigning any reason. 
10. Appointment of Officers.– The Board may appoint such officers, advisers, 
experts, consultan ts and employees, as it considers necessary for the efficient 
performance of its functions on such terms and conditions as it may deem fit, subject 
to such general or special directions as Government may give from time to time in 
this behalf. 
11. Declaration of fidelity and secrecy .– (1) Every  Director,  Adviser,  Officer,  
Expert, Consultant and employee of the Corporation shall, before entering upon his 
office, make such declaration of fidelity and secrecy as may be specified. 
 (2) Any Director, Adviser, Officer, Expert, Consultant, or other employee of 
the Corporation who, in the opinion of the Government, has violated the declaration 
of fidelity and secrecy made by him under sub -section (1) shall be liable, after being 
given a reasonable opportunity of showing cause against the action proposed to be 
taken with respect to him, to be forthwith removed from his office or post. 
12. Financial and technical advisory committees .– The C orporation may 
constitute such financial , technical and advisory committees a s may be deemed 
necessary for carrying out the purposes of this Act. 
13. Immunity of the corporation and its employees .– (1) Every  Director,  
Adviser,  Officer,  Expert,  Consultant  and employee of the Corporation shall be 
indemnified by the Corporation a gainst all losses and expenses sustained or 
 
incurred by him in the discharge of the duties of his office save such losses and 
expenses as are sustained and incurred as a result of his own wilful act or default. 
 (2) The Managing Director shall not be perso nally responsible for the acts 
of a Director,  Adviser,  Officer,  Expert,  Consultant or employee of the Corporation 
which he could not have reasonably prevented by the due exercise of his powers 
and functions under this Act and the rules and regulations made thereunder or for 
any loss or expense resulting to the Corporation by reason of insufficiency or 
deficiency in the value or title of any property or security acquired or taken on behalf 
of the Corporation, by wrongful act of any persons under a liabil ity to the 
Corporation, or anything done by him in good faith in execution of the duties of his 
office. 
14. Delegation of powers .– The Board may, by general or special order, 
delegate to the Chairman, Managing Director ,  Directors,  Advisers  Officers,  
Consultants or employees of the Corporation any of its powers, duties or functions 
under this Act and the rules and regulations made thereunder subject to such 
conditions as it may deem fit to impose. 
15. Meeting of Board.– (1) The meetings of the Board shal l be held at such time 
and place as may be specified: 
 Provided that ninety days shall not intervene between two meetings of the 
Board: 
 Provided further that until regulations are made in this behalf, such meetings 
shall be held at such time and place as may be determined by the Chairman. 
 (2) The quorum required for transacting business at a meeting of the 
Board shall be three. 
 (3) The Chairman, the Managing Director and a Director shall each have 
one vote but in the event of equality of votes the Chairman shall have a casting vote. 
 (4) The meetings of the Board of Directors shall be presided over by the 
Chairman and in his absence by a Director elected for the purpose by the Directors 
present from amongst themselves. 
 (5) No act or proceedings of the Bo ard shall be invalid merely on the 
ground of existence of any vacancy in the Board. 
 (6) The minutes of every meeting of the Board, stating among other things, 
the names of the Directors present, shall be drawn up and recorded in a book to be 
kept for the purpose and shall be signed by the person presiding over the meeting 
and such book shall, at all reasonable times and without payment of any fee, be 
open to inspection by the Directors. 
16. Submission of returns, statements  etc. to Government .– (1) Government 
may require the Managing Director to furnish to it– 
(a) any return, statement, estimate, statistics or other information 
regarding any matter under the control of the Corporation; 
(b) a report on any such matter; or 
(c) a copy of any document in his charge  and the Managing Director shall 
comply with any such requisitions without any undue delay. 
 
 (2) The Managing Director shall prepare and submit a quarterly report to 
the Board. 
17. Power of Board to associate other persons .– (1) The Board may associate 
with itself, in such manner on such terms and for such period as it may deem fit, any 
person whose assistance or advice it may desire in carrying out any of the provisions 
of this Act. 
 (2) A person associated under sub -section (1) for any purpose shall have 
the right to take part in the discussion relating to such purpose in the meetings of the 
Board but shall not have the right to vote, and shall not be deemed to be a Director 
for that or any other purpose. 
CHAPTER III 
FUNCTIONS OF THE CORPORATION 
18. Business which the Corporation shall transact.– (1) The Corporation shall 
draw up schemes, with objects confined to the Province of the Punjab, for the 
development, surveying, prospecting, exploring, mining, processing, industrial 
exploitation and purchase and sale of m inerals including their import and export and 
for the improvement of communications, water supply, power and such other 
ancillary matters as may be conducive to the attainment of these purposes in the 
areas selected by the Corporation for any such development and submit the same to 
Government for approval. 
 (2) The Corporation shall, as soon as may be, proceed to give effect to 
any Scheme approved by Government, and in particular may– 
(a) form and establish companies to manage and run the projects as are 
established by the Corporation: 
Provided that before sponsoring any such company the Corporation 
shall obtain the approval of Government to the Company’s capital 
structure; 
(b) manage on behalf of Government the shares purchased by 
Government in the issued capital o f companies established by the 
Corporation; 
(c) subscribe to the capital of these companies to such extent as may be 
necessary; 
(d) act as Managing Agents of the Companies established by the 
Corporation; 
(e) give short and medium term loans or furnish guarantees to th e 
scheduled banks for loans to the companies established by the 
Corporation in the manner aforesaid; and 
(f) establish, manage and run the projects under its direct control. 
 (3) The Corporation may, if it considers expedient, sell or transfer all or 
any of the shares subscribed by it under sub-section (2): 
 Provided that the Corporation shall not, without the previous sanction of 
Government, sell or transfer such shares at a rate below the par value of such 
 
shares, or below the prevailing market rate if such rate is higher than the par value of 
shares. 
CHAPTER IV 
FINANCE 
19. Corporation to be deemed a local authority .– The Corporation shall be 
deemed to be a local authority under the Local Authorities Loans Act, 1914, for the 
purposes of borrowing money under t he said Act, and the making and execution of 
any scheme under this Act shall be deemed to be a work which such authority is 
legally authorised to carry out. 
20. Loans.– The Corporation may negotiate and obtain for the purposes of this 
Act, loans in local a nd foreign currency from the local or international financial 
institutions: 
 Provided that in the case of loans from international institutions, the 
Corporation shall act with the prior approval of Government. 
21. Corporation Fund.– (1) There shall be a fund to be known as Punjab Mineral 
Development Corporation Fund, which shall vest in the Board and which shall be 
utilised by the Board to meet expenses in connection with the affairs of the 
Corporation including salaries and other remuneration of the Chairm an, Managing 
Director, Directors, and employees of the Corporation. 
 (2) The Punjab Mineral Development Corporation Fund shall consist of– 
(a) investment made by Government; 
(b) grants made by Government; 
(c) loans obtained from Government; 
(d) charges for the management of companies under the direct control of 
the Corporation; 
(e) managing agency commission in respect of companies managed by 
the Corporation; 
(f) loans obtained from the scheduled banks; 
(g) foreign loans obtained by the Corporation; and 
(h) all other sums received by the Corporation. 
22. Custody and investment of Corporation Fund.– (1) All moneys at the credit 
of the Corporation shall be kept in such manner as may be prescribed. 
 (2) Nothing in sub-section (1) shall be deemed to preclude the Corporation 
from investing any such moneys which are not required for immediate expenditure in 
any of the securities described in section 20 of the Trust Act, 1889, in fixed deposits 
with a bank approved by Government or in such other manner as Government may 
direct. 
23. Maintenance of accounts.– The Corporation shall maintain complete and 
accurate accounts in such manner as may be prescribed. 
 
24. Audit of Accounts.– The Corporation shall, with the previous approval of 
Government, appoint its auditors who shall be persons holding certifi cate under 
section 144 of the Companies Act, 1913: 
 Provided that if Government so directs, the accounts of the Corporation shall 
be audited by the Comptroller and Auditor General of Pakistan. 
25. Reports to be furnished to Government .– (1) The Corporation shall furnish 
to Government as soon as possible, after the close of each financial year an audited 
statement in the prescribed form in respect of the assets and liabilities of its projects 
and in respect of its transactions as they stand at the close of t hat year together with 
a profit and loss account for that year and a full report on the working of the 
Corporation during that year and copies of the said statements accounts and report 
shall be published in the official Gazette. 
 (2) The Corporation shall  submit to Government its proposals for the 
ensuing financial year at such time and in such manner as may be prescribed. 
26. Profits to be paid to Government .– The profits of the Corporation shall be 
deemed to be the income of Government and shall be payab le to it in such manner 
as may be approved by Government. 
CHAPTER V 
MISCELLANEOUS 
27. Rules.– (1) Government may make rules for the purpose of giving effect to 
the provisions of this Act. 
 (2) In particular and without prejudice to the generality of the fo regoing 
provisions, such rules may provide for– 
(a) the manner and form of keeping the accounts of the Corporation; 
(b) recruitment of officers, advisers, consultants, experts and other 
employees of the Corporation; 
(c) terms and conditions of service of the Officers, advisers, consultants, 
experts and other employees of the Corporation; 
(d) functions of the Advisers; 
(e) borrowing by the Corporation; 
(f) the date on which and the form in which the annual budget statement 
of the Corporation shall be submitted each year; 
(g) procedure for appropriation and reappropriation of moneys at the credit 
of the Corporation; 
(h) manner and form in which and the authorities to whom returns, reports 
or statements shall be submitted; 
(i) investment of Corporation Funds and surplus moneys; 
(j) sale or transfer o f companies and other immovable property of the 
Corporation; 
(k) the sale or transfer of shares under sub-section (3) of section 18; and 
 
(l) such other matters relating to the administration and other affairs of the 
Corporation as the Government may think fit to prescribe by rules. 
28. Regulations.– The Corporation may, with the previous sanction of 
Government, make regulations for all matters for which provision is necessary or 
expedient for carrying out the purposes of this Act and the rules. 
29. Rules and Regulations to be published in the official Gazette .– All rules 
and regulations made under this Act shall be published in the official Gazette. 
30. Winding up and its consequences .– (1) No provision of law relating to 
winding up of companies shall apply to the Corporation. 
 (2) When, in the opinion of Government, it is expedient that the 
Corporation shall cease to exist, Government may, by notification in the official 
Gazette, declare that the Corporation shall be dissolved from such date as may be 
specified in this behalf in such notification and the Corporation shall be deemed to be 
dissolved accordingly. 
 (3) As from such date– 
(a) all properties, funds and dues which are vested in or realisable by the 
Corporation shall vest in and be realisable by an Administrator  or any 
other officer appointed by Government in this behalf; 
(b) all liabilities which are enforceable against the Corporation shall be 
enforceable only against the Administrator or the Officer appointed by 
Government in this behalf; 
(c) for the purposes of compl eting the execution of any scheme, 
sanctioned under this Act which has not been fully executed by the 
Corporation and of realising properties, funds and dues referred to in 
clause (a), the functions of the Corporation and the Chairman under 
this Act shall be discharged by the Administrator or the officer 
appointed by Government in this behalf; 
(d) the Administrator or the officer appointed by Government shall keep 
separate accounts of all moneys respectively received and expended 
by him under this Act until all  loans raised hereunder have been repaid 
and until all liabilities referred to in clause (b) have been duly met; and 
(e) the Administrator or the officer appointed by Government in this behalf 
shall have power to dispose of the properties, assets, rights, etc.  of the 
Corporation in such manner as Government may direct from time to 
time. 
 (4) Any properties and assets left over after all the liabilities of the 
Corporation have been discharged shall vest in government and all liabilities left 
undischarged after a ll the properties and assets of the Corporation have been 
disposed of, shall become the liabilities of Government. 
 (5) The Administrator or the O fficer appointed by Government in this 
behalf may delegate any of his power under this section to any other of ficer of 
Government or to any officer of the Corporation to such extent and on such terms 
and conditions as may be approved by Government. 
 
31. Repeal.– The West Pakistan Mineral Development Corporation Act , 1958 
(West Pakistan Act XXVI of 1958) is hereby repealed.