Dhudar Mining Project Chairman Raises Concerns Over Taxes and Bureaucratic Hurdles in Balochistan

Quetta: Zhang Liangeng, Chairman of the MCC Huaye Dhudar Mining Project, has expressed concern over federal and provincial taxes and bureaucratic hurdles, saying they are affecting production and discouraging foreign investment in Balochistan.

Speaking to senior journalists, Zhang said the province offers significant opportunities for international investors, but excessive taxation and administrative obstacles need to be removed to attract more investment and enable companies to contribute to the economic development of Pakistan and Balochistan.

He said the company has been carrying out community development initiatives, including support for education, healthcare, clean drinking water, road infrastructure, and vocational training for local residents. According to him, hundreds of local employees have received modern technical training to improve their skills and employment prospects.

The chairman said the company is facing serious production challenges due to what he described as unnecessary federal and provincial taxes. Although the project was granted Export Promotion Zone status by the federal government to reduce its tax burden, he claimed that the overall tax rate had increased to around 42 percent. He also criticized the 18 percent sales tax imposed by the Balochistan Revenue Authority (BRA), saying it has added significant financial pressure and negatively affected production, company revenues, and government income.

Zhang also highlighted difficulties arising from the customs department’s new electronic export system, urging the government to simplify the process to speed up exports and reduce operational delays.

Responding to a question, he said the company had approached government authorities to resolve several operational issues but later sought relief through the High Court after failing to obtain a satisfactory response. According to him, the court granted the company 50 percent relief in the matter. He reiterated concerns over the 18 percent BRA sales tax and warned that such policies could discourage future foreign investment in Balochistan.

He emphasized that the project plays an important role in strengthening Pakistan-China economic cooperation and said the company remains committed to complying with Pakistani laws while seeking a more efficient regulatory framework.

Highlighting the company’s corporate social responsibility initiatives, Zhang said it has supplied medicines and equipment to hospitals and basic health units, provided ambulance services, supported schools with books, uniforms, bags, and infrastructure improvements, and contributed to educational programs for around 10,000 female students under Chinese government-supported initiatives.

He added that the company distributes food packages and financial assistance to needy families during religious festivals, has maintained the Winder–Dhudhar Road for several years, donated research funds to Lasbela University, installed 13 water coolers at Gadani Jail, planted 10,000 trees to improve the environment, and taken measures to protect wildlife.

According to Zhang, around 1,250 local people are currently employed by the company. He also said water extracted during mining operations is treated for agricultural use and drinking through reverse osmosis (RO) plants. The company currently produces approximately 500,000 tons annually and is working to expand production while maintaining strict safety standards at its mining sites.