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Illegal phosphate mining in KP causes Rs740m loss to exchequer

June 02, 2026
The representational image shows workers busy on a coal mining project. — APP/File
The representational image shows workers busy on a coal mining project. — APP/File

PESHAWAR: An investigation by the National Accountability Bureau (NAB) Khyber Pakhtunkhwa has revealed that alleged illegal phosphate mining in Kakul, Abbottabad caused losses ranging from Rs740 million to Rs848 million to the national exchequer, while also inflicting significant damage on valuable forest resources.

According to NAB sources, local residents filed a complaint against Zar Gul Khan, a resident of Kakul, alleging that he had been illegally extracting phosphate from forest land and selling it to various fertilizer manufacturing plants. Following a preliminary inquiry, the allegations were found to have merit, prompting NAB to launch a formal investigation.

The investigation alleges that between 2010 and 2018, phosphate worth millions of rupees was extracted from forest areas with the alleged connivance of certain officials of the Mines Department. NAB further stated that substantial damage was caused to Guzara forests during the period of illegal mining.

According to the NAB investigation report, the accused was subsequently granted a mining licence by the Khyber Pakhtunkhwa Mines and Minerals Department in 2018. However, investigators claim that the licence was issued in violation of applicable forest laws and mining regulations.

NAB alleges that a total of 175,258 metric tons of phosphate was extracted between 2010 and June 2025, with an estimated value ranging from Rs740 million to Rs848 million. The bureau maintains that the illegal activity resulted in significant losses to the government in the form of unpaid royalties, taxes andother dues, causing a substantial financial blow to the national exchequer. NAB has filed a reference under the Anti-Money Laundering Act (AMLA) 2010 in the Accountability Court. Trial proceedings are expected to commence shortly.