By The South Asia Times

PESHAWAR, Pakistan -  Khyber Pakhtunkhwa Governor Faisal Karim Kundi has alleged that an organized network involving political figures, criminal groups and militants is behind large-scale illegal gold mining in the northwestern Pakistani province, claiming that around 90 kilograms of gold worth 4.2 billion Pakistani rupees ($15 million) is extracted illegally every month.

Kundi said more than 2,000 excavators were being used in unauthorized mining operations, with Kohat district emerging as a major centre of the activity.

He alleged that approximately 80% of the gold extracted from the province was smuggled into neighbouring Afghanistan, causing billions of rupees in losses to Pakistan's national exchequer.

The governor described the arrangement as a potential nexus between illegal mining, organized crime and militancy, warning that the exploitation of natural resources was also creating serious security challenges.

He questioned the terms of a reported 10-year gold-mining lease, saying that awarding rights over resources generating an estimated 4.2 billion rupees in monthly gold production for a total payment of just 4.92 billion rupees amounted to the plundering of national resources.

Kundi also named several political figures whom he accused of patronizing or facilitating the illegal mining network.

Those he named included PTI leaders Aftab Alam, Shehryar Afridi, Khurram Zeeshan, Sajid Iqbal and Ehsan, as well as PPP's Amjad Afridi and JUI-F figures Seth Gohar Saifullah, Naseem Afridi and Imad Azam.

He also alleged involvement by Naveed, the brother of former provincial chief minister Sohail Afridi; Azhar Bukhari, a relative of Senator Khurram Zeeshan; and Nazir Afridi, described as the senator's coordinator.

The allegations have not been independently verified, and no responses from the individuals named were included in the information released by the governor.

- Alleged links with militant networks

Kundi further alleged that a so-called Youth Committee was established in February 2026 under the patronage of the previous PTI-led provincial government to control the proceeds of illegal gold mining.

He claimed that the committee was headed by a man identified as Nemat, also known as Commander, whom he described as a militant commander affiliated with the Afghan Taliban.

According to the governor, the committee collected regular payments from people involved in illegal mining, charging local operators 700,000 rupees per week and operators from outside the area 1.1 million rupees.

The allegations point to concerns that illegal extraction and smuggling of mineral resources could provide a source of financing for militant networks operating in the region.

Khyber Pakhtunkhwa, which borders Afghanistan, has faced a renewed wave of militant violence, particularly in its southern districts.

- Kohat security situation under scrutiny

The allegations are particularly significant for Kohat, which has recently witnessed a deadly attack on police.

Ten police personnel were killed in a recent militant attack in the district, highlighting the deteriorating security situation and the challenges facing law enforcement agencies.

The incident has intensified concerns about the ability of militant groups and criminal networks to operate in areas where illegal economic activities generate substantial revenue.

The governor's allegations have brought renewed attention to the possible connections between illegal mining, smuggling and militant financing, although any such links would require independent investigation and evidence.

- New provincial government announces crackdown

In response to the alleged illegal mining operations, the Khyber Pakhtunkhwa government has decided to establish a special task force named the Shaheed DSP Haider Zaman Special Task Force to tackle unauthorized extraction and regulate mining activities.

According to provincial government sources, the task force will include representatives from law enforcement agencies, the Mines and Minerals Department, the Finance Department and the district administration.

It will prepare a comprehensive strategy within two to three weeks covering legal mining procedures, security arrangements and environmental protection.

The provincial government has also decided to cancel all leases issued for gold mining, according to government sources.

Mining contractors and other relevant individuals have been directed to remove their machinery within one week. Those who fail to comply will face legal action, the sources said.

The proposed crackdown is intended to bring mineral extraction under government regulation, prevent the smuggling of valuable resources and strengthen security in affected districts.

- A major test for provincial authorities

Khyber Pakhtunkhwa is rich in mineral resources, including gold, gemstones, copper and other commercially valuable deposits. However, weak regulation, illegal extraction and smuggling have long raised concerns about the province's ability to generate public revenue from its natural wealth.

The allegations made by Governor Faisal Karim Kundi raise questions about the oversight of mining licences, the involvement of political actors and the possible exploitation of mineral resources by criminal and militant networks.

The effectiveness of the proposed task force will depend on whether authorities can independently investigate the allegations, recover illegally extracted resources, ensure transparency in mining contracts and prosecute those found responsible.

The case also presents a broader security challenge for Pakistan, where the financing of militant groups through illegal economic activities could undermine counterterrorism efforts in the country's northwestern border regions.