GILGIT, June 5: The Gilgit-Baltistan Metals Minerals and Gems Association (GBMMGA) has alleged some foreign companies with the connivance of federal and provincial governments were exploiting natural resources in the region to the detriment of the local economy.

Addressing a news conference here on Sunday the leaders of the association alleged that issuance of mining leases and exploration licences were controlled by such companies, which they claimed had become an influential mafia, keeping the sector backward for their ulterior motives.

The chairman of GB Chamber of Commerce and Industries, Shehbaz advocate, former DIG Hashmatullah, and other businessmen in the field said the mineral mafia was so influential that the provincial government was pursing their cases with the centre.

The businessmen also alleged that the present government in the region was working for the promotion of this mafia.

They said applications of more than 200 local companies were not disposed of for past two years whereas decision on such cases was a must in six months under the NA Mining Concession Rules 2003. They added under Constitution of Pakistan and GB Governance Order 2009 the transportation of precious stones outside region was prohibited.

They said the association was formed to restrict mineral mafia's influence and put forward recommendations to promote the sector.

They said the government ought to make sure these foreign companies carried out their operations in the region in partnership with the local companies.

The GBMMGA proposed establishment of a full-fledged directorate of minerals under control of a director general. Besides, mineral institutes should be set up and soft term loans be extended to local companies.