Criteria for Determination of Fair Surface Rent Added into the KP Minerals Sector Governance Act, 2017
Reform ID K016
Reform Description  Categorization of Minerals into Groups with Fixed Surface Rents

Before: Due to no prescription from Govt., Businesses in the mineral sector were charged with excessive surface rents.

After: A fair criteria for charging surface rent has been notified to safeguard businesses in the minerals sector.
Sector  Minerals Sector
Beneficiaries All the Businesses Involved in the Minerals Sector
Jurisdiction/Location  KP
Department  Khyber Pakhtunkhwa Minerals Development Department
Date of Implementation  17-06-2021
Details Difficulty ●      A wide range of different minerals being extracted in the industry, uncertainty in surface rent led to a lack of fairness in the rent actually charged.

●      This meant that some businesses were being charged more than the fair amount, leading to an increase in costs for them.
Analysis ●      Through consultations, it was deemed necessary to create a system by which minerals could be clubbed together in groups and have a surface rent rate prescribed to each of these groups.
Solution  ●      To allow a fair surface rent, a fixed rate was devised for each of the mineral categories.

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