International Islamic University Islamabad

Subject: Management theory and practice (MGT501)Company Selected:

Pakistan Mineral Development Corporation (Pvt.) Limited (PMDC)

Submitted By: Mohammad Farooq

Muhammad Khalil Hussain Muhammad Zubair Abdullah

Muhammad Younus Balti Shafqat Balti

Date for Submission of Assignment: 10-04-2008

PAKISTAN MINERAL DEVELOPMENT CORPORATION (PVT.) LIMITED (PMDC)

History/ Introduction:

Pakistan Mineral Development Corporation (PMDC) is a private limited company

registered in 1974 on bifurcation of West Pakistan Industrial Development Corporation

(WPIDC) with paid up capital of Rs. 10 million fully contributed by Government of

Pakistan. The registered office of the company is situated in the capital territory of

Pakistan; Islamabad. As it was registered as a private limited company so it is functioning

on self-sustained basis. At the time of creation, PMDC has employed almost 10,000

employees in it. The projects are situated in far-flung areas of the country, have huge

infrastructures and these provide social amenities like water, hospitals/dispensaries,

electricity and telephone etc. PMDC being in public sector and managed through the

Board of Directors is contributing too much to the Government exchequer by making

payments on account of royalty, dead rent, sales tax, income tax etc. PMDC is

implementing labor laws of Pakistan, in letter and spirit by virtue of which, no one

remains deprived of his protected rights. Beside it extends benefits additionally in the

shape of peace agreements through Collective Bargaining Agent (CBA) due to which the

local people enjoy comparatively better standard of living.

PMDC has four salt and four coal projects in Pakistan, out of which three salt mines in

are located in Punjab and one in NWFP, as for coal mines three coal mines are situated in

Balochistan, one coal mine in Sindh. All these mines are called PMDC’s operating

projects and have no separate legal entity. PMDC has also two subsidiary company one

in the name of Lakhra Coal Development Company (LCDC) operating a coal mines in

Sindh in which PMDC owns 50% shares while 25% each is owned by Government of

Sindh and WAPDA respectively and another in the name of Sarhad Mineral Limited

(SML) operating a salt mine in NWFP in which it has 49% Authority (Government of

NWFP). At the same time PMDC has investment in development of soap stone and coal

projects in Federally Administrative Tribal Areas (FATA) areas as a joint venture partner

with FATA Secretariat of Governor NWFP. Similarly it has profit sharing agreement

with Chinese Company who is developing Duddar Lead Zinc deposits in Balochistan.

PMDC projects have not a separate legal entity. All employees working in the projects

are appointed by the PMDC. Funds requirements of the projects are also met by PMDC

Head Office against sales revenues generated from the sale of salt and coal. Prior to 1999,

PMDC was facing liquidity crunch and was at the brink of collapse. It had offered some

projects for sale at that time, the GOP would have got nothing and instead has to

contribute from its kitty to pick up its loan liabilities and discharge the liabilities of

employees and others. In the following years PMDC has turned around in a big way by

increasing its productivity significantly and has now emerged as a progressive

organization.

Organization Chart:

The introduction and history of PMDC projects are given below:

Khewra Salt Mines:

Khewra Salt Mines project is located at Latitude 32-39 N and Longitude 73-03 E

about 5 kilometers north side of Tehsil Pind Dadan Khan, District Jehlum on the right

bank of Jhelum River. These mines are accessible both from Lahore – Islamabad

Motorway via Lilla and Kalar Kahar Interchange. The approach road from Islamabad to

GM(P&D)

DGM(Audit)

GM(Salt)

GM(F&A)

GM(Coal)

GM(A&L)

GM(Mktg)

GM(Med)

Manager(P&D)

Manager (FATA)

DGM(Salt)

DGM(F&A)

DGM (Est.)

DGM (Law)

DGM(Coal)

Project Manager Khewra

Project ManagerWarcha

P.M Jatta B. Kheil

Project Manager Kalabagh

Manager(Planning)

Project Manager Sharigh

Project Manager Lakhra

Project Manager

Sor Range

Project Manager Degari

Managing Director

Khewra Salt Mines is 152 kilometer on the south side and 13 kilometer from Choa

Saidan Shah in the north side.

The existence and extraction of salt dates back well before the Christ Birth (B.C).

“Celokas” who was a General of the Alexander the great’s army has mentioned the

mining of salt in this area in 327 B.C. Emperor Akbar mentioned the trade of Salt Range

salt in “Ain-e –Akbari. The Mughal and former rulers were collecting revenue from this

source, which continued till Sikh regime. The salt mines changed hands from Mughals to

Sikhs in 1809 AD and salt became one of the 48 commodities.The whole of Salt Range

had gone under the Company with the annexation of Punjab in 1849. Initially this mine

was given under the administrative control of the Punjab Salt and Custom Department,

but in 1869-70 it was handed over to the Inland Custom Department (Central). In 1947,

after partition, the Excise & Taxation Department, Government of Pakistan took over

these mines and with the passage of time these mines were controlled by various

department namely Bureau of Mineral Resources, WPIDC and finally these were

transferred to PMDC in July 1974.

Warcha Salt Mines:

PMDC Salt Mines, Warcha is situated in Distt. Khushab. It is about 60 Km North

- West of Khushab city and about 20 Km North - East of Quaidabad. Warcha mines were

also working during the Mughal and Sikh periods.

In the year 1885, Dr. Warth introduced the scientific Room & Pillar method of salt

excavation, the then Chief Engineer, which is still in vogue in Main Mine. In the past

there were track line mounted activities in Main Mine, but to curtail the expenditure on

production of rock salt, the system has been changed to trackless mining during the

month of July, 2002

The mining area is divided into two sections i.e. Main Mine and Jansukh Mines. The

excavation of rock salt from Main Mine at Warcha is carried out through Registered

Miners and from Jansukh Mines through raising contractor. There are 102 Registered

Miners at this project and they work under the supervision of 7 Nos. Gang -men. These

Gang-men/Registered Miners have been restricted only in Main Mine, Warcha. But in

Jansukh area, the raising contractors have been allotted various Mines for the excavation

contract of rock salt.

Kalabagh Salt Mines:

Kalabagh Salt Mines are located at a road distance of about 300 Km SW of

Islamabad. The mines are mainly situated on the right bank of river Indus. The Kalabagh

Salt Mines are divided in to 3 major sections as under: -

Main Mine located behind the Kalabagh city near village Wanda Kukranwala and bank

of River Indus.

Drift Nos. 12, 13 and 14 located in Kalabagh city at Zero Point.

Mari Mines located near old Mari village Tehsil & District Mianwali

PMDC is holding 2 leases for mining of rock salt from the area.

Mining Lease of Main Mine and Drifts 12, 13 and 14 over an area of 2649.7 acres.

Mining Lease of Mari for 1188 acres.

PMDC has applied for third lease at Katacha Bangi Khel to the Licensing Authority,

Govt. of Punjab.

The transportation of salt is through mules from deep chambers in the main mine up-to

the lowest level and then through haulage. In other sections, it is exclusively through

mules.

There is no Chemical Industry at or around Kalabagh as ICI at Khewra and Olympia at

Warcha, therefore the major quantities of salt are sold to the salt dealers. A small quantity

is, however, supplied to P.O.F. Wah and Pakistan Atomic Energy Commission.

Bahadurkhel Salt Quarries:

Bahadurkhel Salt Quarries are situated about 80 K.M. from Kohat , 48 Km from

Bannu, 32 Km from Karak district and 156 K.M south of capital of NWFP.. It lies on

topographic sheet No.38-O/4.

The British took the Kohat quarries in the year 1849. Before the British rulers, these

quarries were held by local Chieftains who were paying a nominal payment to the Sikh

rulers. The British government selected 13 Maliks from Charpara, Bahadurkhel and

Darish Khel villages for excavation of salt. Bahadurkhel Salt Quarries are the biggest

quarries of NWFP. Maliks of these villages arranged Miners for excavation of rock salt

from these quarries and British Govt. paid an extra amount after excavation of 100

Maunds salt (Salmani). The British Govt. fixed salmani for the Maliks in 1942.

It is further stated that when any one among the Maliks or Salmani Holder dies their legal

hairs occupy the salmani charges.

Jatta Salt Quarries :

Jatta salt quarries are situated 100 K.M south on the Indus Highway from

Peshawar, 32 Km from Kohat city and 32 Km from Karak city. The area lies on

Topographic sheet No. 38-K/4.

Karak Salt Quarries:

Karak Salt Quarries are located 138 K.M south on the Indus Highway from

Peshawar and 5 Km away from the Karak city. The area lies on Topographic sheet No.

38-O/4.It is smallest section of Jatta/Bahadurkhel Project.. There are three underground

mines, one main mine is presently running departmentally and other two through

excavation contractors. The sale price of Karak salt is Rs.107/- per tonne and we are

paying Rs.30/- per tonne to the salt cutter on departmental mine and Rs,67/- per tonne to

the contractors from the above price of salt.

OPERATING PROJECTS OF COAL:

Sharigh Coal Project:PMDC Collieries Sharigh is located at about 145 K.M from Quetta in the East,

and 120 K.M North of Sibi. It is connected with rail track by Sibi-Khost Section.

Sharigh/Khost Coal field was discovered in the North/Western part of India. After

extension of Railway track in these parts in 1880, the then North/Western Railway

Department was extracting coal to operate their locomotives. After-wards, these mines

were abandoned when better quality coal was discovered in Bengal and Behar. After

independence, the Government of Pakistan allotted Sharigh Collieries to the Tikam Das.

Sor Range Coal Project:PMDC Sor Range Collieries is located to the South-East of Quetta city at a

distance of approx 25 K.M. Since 1900, the activities of Sor Range Collieries (Now

called PMDC Sor Range Collieries) had been caring-out by different

stake-holders/Parties till the handing over to PIDC in 1956. After independence in 1947,

a Labour Jamadar took illegal possession of the mines until 1949, when the Government

of Pakistan grouped the numerous small mines into larger economic units and allocated

these to private parties. The above leases were transferred to PIDC in 1956, which after

then in 1974, mines were handed-over to the PMDC.

Lakhra Coal Project:Lakhra Coal Field is located at a distance of about 75 Kilometers to NW of

Hyderabad and 217 kilometers to NE of Karachi. The nearest village from Lakhra is

Khanote, which is situated on main Indus Highway and rail link between Hyderabad and

Dadu. A metaled road joins PMDC leased area with the Indus Highway.

Degari Coal Project:Degari Collieries are situated at about 50 Kilometers to the South East of Quetta

via Spezend in the District of Quetta, at an altitude of 2000 meters. Degari area was

mined initially by the local tribes, and then the mining area was acquired by Khan of

Kalat till 1942. Thereafter, Regional Coal Contractor took-over the control of these

mines from Government of India. After independence, once again Khan of Kalat gained

the rights of mining but very soon the mines were passed-on to the jurisdiction of the

Balochistan State Union. On the formation of one unit, the mines were transferred to

Department of industries, Government of West Pakistan. In 1960, the prospects were

handed-over to PIDC who started development work. On the recommendations of

Japanese Experts, these mines were mechanized and operated under the supervision of

Japanese Engineers till 1971. In 1974, PMDC took over the mines from PIDC and had

been achieving an appreciable production upto 1984-85, and earned cumulative profit of

Rs. 24.057 million upto 1984-85.

Functions/Operations of PMDC:

As explained earlier, PMDC has four salt and four coal projects. Its basic function

is to searvh for minerals, explore, develop and develop and exploit the minerals of al kind

including copper, lead, zinc, coal and salt. It is extracting these minerals and selling it.

From there it is generating revenue. Also PMDC has two subsidiaries one in the name of

Lakhra Coal Development Company operating a coal mine in Sindh in which PMDC

owns 50% share while 25% each is owned by Government of Sindh and WAPDA. As the

50% shares are owned by PMDC, so it is holding the management of LCDC. Its

managing director is the employee of PMDC. Another subsidiary is in the name of

Sarhad Mineral Limited operating a salt mine in NWFP in which it has 49% Authority

(Government of NWFP). At the same time PMDC has investment in development of soap

stone and coal projects in FATA areas as a joint venture partner with FATA Secretariat

of Governor NWFP. Similarly it has profit sharing agreement with Chinese Company

who is developing Duddar Lead Zinc deposits in Balochistan. PMDC projects are not a

separate legal entity. All employees working in the projects are appointed by the PMDC.

Funds requirements of the projects are also met by PMDC. Head Office against sales

revenues generated from the sale of salt and coal. Prior to 1999, PMDC was facing

liquidity crunch and was at the brink of collapse. Had it been offered for sale at that time,

the GOP would have got nothing and instead has to contribute from its kitty to pick up its

loan liabilities and discharge the liabilities of employees and others. In the following

years PMDC has turned around in a big way by increasing its productivity significantly

and has now emerged one of the progressive organization. So it is cleared that its basic

operation is the production of salt and coal and then sale of it at a price so that it can earn

a profit after deducting all the expenses.

OPERATING PROJECTS OF SALT

Khewra Salt Mines:

Warcha Salt Mines

Kalabagh Salt Mines

Bahadurkhel Salt Quarries

Jatta Salt Quarries

Karak Salt Quarries

OPERATING PROJECTS OF COAL:

Sharigh Coal Project

Sor Range Coal Project

Lakhra Coal Project

Degari Coal Project:

LONG TERM SUPPLY AGREEMENTS:

PMDC has long term Coal supply agreements with

Fecto Cement

Kohat Cement

Lucky Cement

Wapda Power Plant,Khanot

Olympia chemicals, Quaidabad

Zeal Pak Cement, Hyderabad

Salt Marketing

Export to India

ICI Soda Ash Factory, Khewra

Sitara chemicals

Olympia Chemical, Warcha

Ittehad Chemical, Kala Shah Kaku

Revenues:

PMDC is generating revenue from its operations; from production and sale of

minerals and then paying all the administrative expenses and other contributions. Other

sources of its income are “Interest Income” and sale of scraps or some where sale of

tender forms. It also gives the dividend to the government of Pakistan, as it is generating

profit, therefore, it is paying tax to the government. All these are explained one after

other. Its profit and loss for the last five years is tabulated below. The amounts of

dividend paid and the amount of tax paid to the government is also tabulated.

PROFIT AND LOSS FOR THE LAST FIVE YEARS

Rs. In “000”

2006-07 2005-06 2004-05 2003-04 2002-03

Profit Before Tax 128,729 236601 188000 146403 63350

Profit After Tax 86619 159009 126661 123375 60824

Net Profit/Loss After

Tax And Reserves

21802 20676 -5216 106926 60824

DIVIDEND PAID TO THE GOVERNMETN OF PAKISTAN

(For the last two years and proposed for the year 2007-08)

Rs. In “000”

Proposed for 2007-08 2007-08 2006-07

15000 25000 15000

TAX PAID TO THE GOVERNMENT

(For the last five years)

Rs. In “000”

2007-08 2006-07 2005-06 2004-05 2003-04

42110 77592 61339 23028 2526

Therefore it is cleared from above detail that PMDC is generating profit from which it

pays tax to the government, as well dividend, therefore, it became a source of income for

the government. As well as it provide employment to the people on regular and

permanent basis. Other revenues of it are from sale of scrap and the Interest Income, but

the major portion of income is from sale of minerals. These are also tabulated in the

supporting documents which are appended with this assignment.

Strength:

The strength of its employees as on March, 31st 2008 is 2352 (Two Thousand and

Fifty Two). These employees are working at Head office & Branch Offices as well as at

projects. The total number of permanent officers in PMDC is 83, while 25 are the

supervisors. Regular staff workers are 655. Contract workers are 324, and the coal cutters

and other laborers at coal and salt mines are 1260.the total of these all comes to 2353.

Social Responsibility:

For the welfare of society it is contributing too much. It has established high

schools at different projects like Khewra, Warcha, Sor-Range, Lahr etc for the welfare of

the children of employees and for the other general public. Also it has made a mining

survey college at PMDC salt mines Khewra project. And also it has established other

educational institutions for the welfare of public. PMDC charges half fee from the

children of its employees as well it provide free education facility to the needy students.

When an employee of the PMDC died, it give free education to the children of their ex-

employee and many other incentives like free house rent for one year and some donation

and also the amount of insurance i.e. Rs. 200,000 to the worker or staff and Rs. 400,000

and above to the family of the ex-employee. Also the insurance of all its employees is

free, for which the contribution paid by the corporation. Beside these it provides free

medical facility to the employees and their dependents. For this PMDC is bearing huge

medical expenses. As the welfare is considered, being a profitable organization, PMDC is

paying tax to the government which is used for the welfare of the general public. Further

it has made an asthma resort hospital for the patient of asthma, in which the asthma

patients are admitted and they feel better after the treatment from this hospitals. Also it

donates some amounts to the schools and hospitals. Recently it has donated Rs. 300,000

to a school which is located in Jatta Bahadur Khel, Distt. Karak. As it employees 2352

people and many other are lease holders and the private laborers who are also earning

from the existing of PMDC.

Products:

The major products of PMDC are coal, salt, zinc, silica and lead. After producing the coal

and salt it sells them. Also they have many by products like salt show pieces and salt

lamps which are very popular all over the world. The salt of PMDC is popular in batter

quality all over the world. The coal of better quality in Pakistan is also produced by the

PMDC. PMDC is well known in its products all over the Pakistan as well it is famous in

many countries.

Services:

Although the basic function of PMDC is to produce not to serve, yet it is

providing its services to the visitors visiting PMDC salt mines Khewra tourist resort. The

tourist resort of PMDC is shown in a pamphlet appended below this project.

Contribution towards government:

PMDC is contributing its funds toward the government. The major amount is the dividend and the tax. It is paying tax every year from its operations. Also it pays dividend to the government of Pakistan. PMDC is based upon self sustained basis yet it contributes in GDP.

Problems and Solutions:

There are some problems which PMDC is facing and also the solutions for these are prescribed under that.

(1) Privatization: PMDC is on the hit list of privatization by Pakistan Privatization

Commission. It could be privatized soon. Due to this process of privatization,

organization cannot start new projects as well the employees are more concerned

with their future. Organization is not taking the risk of opening new projects and

to invest huge amount on development of projects as well as on research, because

it will increase the expenses of the company and also it affects on the liabilities of

the company.

Solution:We suggest that the problem of privatization should be solved by the new

government and if it is not going to privatize then the government should give

surety, so that they can invest on new projects and also to make research more. As

for employees they will work with full attention and devotion.

(2) Competition with Private sector: PMDC is facing a problem of competition with private sector. As private

mine lease holders are producing/ extracting minerals at a low cost and they sold

at a price which is near equal to the cost of production of PMDC. So it is difficult

for the PMDC to compete with them. The reason for the high cost of production

of PMDC is the use of obsolete method of production and it employees a large

number of people to which they give certain incentives and paying a huge salaries

and wages, it is its administration cost.

Solution: Organization should compete with private sector. They can

compete if they reduce their cost of production. They can reduce their cost of

production if they use the advanced method of production and new machineries

and technologies, also they should employ the persons as much they have needed.

Furthermore, the abilities of marketing department should be improved, and

marketing managers have less potential to face this problem. Marketing manager

need to overcome this problem by new ideas and marketing techniques.

Inherited rights to 685 miners:At the time of independence, the British’s transferred some working rights

to the 685 workers at Khewra salt mines and 28 miners in Kalabagh salt mines

and some in Warcha project and other. which were the employees in mines at that

time and when Pakistan came into being, that rights also acquired legal status.

After the formation of PMDC it faced a problem by them, as they have the rights

in production the PMDC had to pay and is paying a huge cost to them for the

extraction of salt at Khewra project. The organization can not use machinery at

that projects, if it do this then there are strikes by the trade-ism unions and they

harm organizational resources. In 1999, PMDC has done the same practice and

there was a strike by the unions and they burnt vehicles and buildings of the

organization.

Solutions: The project managers take a step to overcome these problems. The

manager should negotiate with these Miners who have Right from the British

Government. Managers satisfy them that Mechanization and Mass production is

not against their Rights.

(3) Overall cost increases: PMDC have employed large number of employees. These employees are

given many facilities like health, children education, scholarships etc.

Organization has also health units and educational institute. Asthma hospital and

Survey College in Khewra (Jehlam) and Survey College in Makarwal are also

working.

Solution:The overall cost is not a problem for the PMDC. Most of organizations

provide these facilities to their employees or those people where organization

operates their projects.

(4) Lack of technology: PMDC is also facing a problem of new technology for extracting deposits

of minerals. Some deposits needs modern technology. PMDC have no funds for

acquiring these technologies.

Solution:

If Government finances the PMDC then it will purchase the new

technology from other countries.

(5) systematic Problem: PMDC faces a systematic problem. As we mentioned above there is only

manually work which is done through hand. Employees have no habits of

working. They are not regular on projects. Marriage or death of any employee

or their relative may cause stop working on the projects. The whole work is

closed. They are the only trend worker in Mines on that area. There is no

backup. They have also working rights in these mines so PMDC cannot arrange

worker from external sources.

Solution:Manager should motivate the workers and also give incentives to the

employees. They should apply new management techniques.

Labor problems in Coal Mines: Coal mines are very deep. These mines are different from one an other.

These need highly safety measures. Only trained labor works inside the coal

mines. The labor in these mines belong to swat and north waziristan. They are

very hard working as well specialized in this field. As now the politico legal

situation of their native cities are

Solution:PMDC should train some labor to overcome this problem. PMDC have

some Institution at some project. Survey colleges in Makarwal (Mianwali) and

Khewra (Jehlam) are the perfect places where these classes can be arranged.

(6) Timber used in Coal Mines: Timber is used in coal mines for proper working. This increases the cost of

production in coal mines because timber is very expensive in these days. As well

its availability is rare, it looks very difficult some times to purchase timber when

it is not available in the markets or the size they are searching is not available,

then the production process is affected.

Solution:This problem should be resolved by using some substitute or alternative of timber,

which would be stronger than timber and it should also be less than the cost of

timber, so that the cost can be reduced and the working will not affect.

(7) Private people import Coal :Private people import coal which is in better quality. They donot purchase

the coal from PMDC. Only some Government Organizations like WAPDA,

Pakistan Atomic Energy Commission and some Cement Factories purchase coal

from PMDC. PMDC produces only 10% of total Coal used in Pakistan. Quality of

this coal is not good so people prefer imported coal.

Solution:The government should take some strict measured so that the local

producers like PMDC should be encouraged. In this connection, the government

should raise the import duty and tariff. The private sector organization should also

buy coal from PMDC, as it is low in price, so that the own national producers

should survive and they will encourage in this way. This will also save our

foreign exchange and improve the balance of payment of our country.

Geo-Political Problems:

A Geo-political problem of Pakistan is not good. Political problem in

Pakistan is also disturbing from a longer period. After explosion of Atom Bomb

in 1998, many foreign companies of Japan, Germany and Australia stop their

working on many projects. After 9/11 security problems increased in Pakistan.

Foreign does not show their interest. Their security cost increased. Jatta Bahadur

Khel near district Karak facing political problems.

Solutions: It is very serious problem. It is prevailing all over Pakistan. Government

should provide security to PMDC for proper working with foreign companies on

the projects. PMDC also arrange their securities measures.

(8) Lahore and Quetta Branches: The basic objective of these branches is to enhance the sale of salt and

coal correspondingly. The branch in Lahore is responsible for the sale of salt to

abroad. But it is not performing its function effectively. Also its function is to

make the exports of salt to India but it is not achieving its objective. Its

administration cost is increasing to much. Similarly the Quetta branch also fails to

achieve their goals.

Solution:The efficiency of these two branch offices can be increased by reducing

their expenses and by finding the hurdles of these. Why they are not working so

effectively? When you find the problem then you can solve it. As some wise man

told “when you define your problem, half of your problem is solved. In our

opinion the problem is:

I) High administrative cost.

II) Non- MBA persons, who are not specialized in this field.

(9) No research work: There is lack of research and development which can be seen through on

its number of projects which are same as these were on creation of PMDC.

Solution: PMDC should start a research program for increasing the production of

salt and coal but also other deposits like Gold, Iron etc. as these are described in

its Article of Association.

Our Observation and Suggestion about the Organization:

We visited Pakistan Mineral Development Corporation and we have observed many things in it. Being a self sustained basis it works more effectively than the other government organizations working in Pakistan. It provides employment to the 2352 people directly and thousands other are also there which are living their lives due to the PMDC. As explained earlier it provides medical, educational and many other facilities to the people of Pakistan. It contributes in GDP. It pays tax and dividend to the government. The salt we purchase at a low cost is due to the PMDC being involved in the process of extraction. As the government is going to privatize it, but the actual fact is that it is a profitable organization, it is not any burden on the government, as it is giving employment to the thousand of peoples directly or indirectly, therefore it should not be privatized, it is resource for our country. No doubt it is facing many problems in its operations but the fact is that problems exist in every system. The problems can be removed in some cases by taking drastic actions. If the government wants to privatize then there will also be a problem of its bid as no one can buy this a huge organization himself alone. Its privatization is a political issue. We observed it as a potential organization; its problems should be heard by the government, so that it can work more effectively. We have seen many its advantages to the society so it should work and not to be privatized. The new government can think upon it and see that how much it is better full for the country, as natural resources are wealth of a nation.