ISLAMABAD: Ministry of Industry and Production has recommended to Prime Minister not to disband the Engineering Development Board (EDB) as the department is working hard to persuade the foreign investors in the auto sector.
Sources told this scribe that Ministry of Industry and Production in its written reply to PM has stated that EDB should not be dissolved as the department’s performance is very well compared to last year. Eleven international companies have shown their interest to install their plants in Pakistan. In addition to this, it was stated that if the EDB functions divided to other departments than foreign investor will surely suffer and they can face a lot of problems.
PM Secretariat wrote a letter to MoIP last month directing to give details about EDB. In its written reply, Ministry has given the details of production and sale data of vehicles of last two years.
The production of cars has surged to 73,766 in four months which was recorded at 58,971 in first four months of 2016 meanwhile the sale of cars have been reached to 70,040 as 14181 more cars have been sold in first four months of the current fiscal year than the previous one.
On the other hand, the production of buses and trucks have rushed to 3589 in four months which was recorded at 2,942 in first four months of 2016 meanwhile the sale of buses and trucks have reached to 3176 which was recorded 2,580 in first four months of previous year.
Ministry further stated in its reply that large numbers of foreign investors are visiting BOI and EDB headquarter to show their interest in auto sector, sources further added that eleven companies have made commitment to invest in Auto Sector
Companies including DFSK Motor Co Ltd, Luoyang Dahe New Energy vehicle Co Ltd, Yangtze Motor Group Co Ltd, Zotye Intl Automobile, Changan Kuayue Automobile Co Ltd, Chongqing Lifan Automobile Co, Kia Motors Company, Changsha Foton Vehicle Technology Co Ltd, Hyundai Motor Company, Beijing Automobile Works Co Ltd, SWM Motors Co Ltd and Chongqing Changan Automobile have shown interest to invest over Rs 7-8 billion.
Earlier it was proposed to divide the functions of EDB into Commerce, Industry and Production, Federal Board of Revenue (FBR) and Board of investment but due to a strong reaction from auto industry.
Former PM in June 2017 had directed to dissolve the EDB for alleged involvement of its staff in corruption and malpractices as well as for creating hurdles in the way of billions of dollars in investment flows into the automobile sector whereas the business associations, industry bodies and experts have unanimously opposed the government plan of disbanding the EDB and termed it an unjustified decision, as the development and growth of whole auto parts vending industry’s credit goes to this institution.
One official on the condition of anonymity said that EDB was working well but some people close to former PM had given a false report that officials of EDB are involved in corruption whereas eleven international companies have made commitment to invest billions of rupees in Pakistan.
Irony of matter is that such technical organisations like engineering development board are beyond the comprehension of the ruling class and their so called advisers. Therefore they advise to disband instead of further promotion of such technological pillars of the economy of the country. OF COURSE THERE IS NEED OF CLOSE MONITORING AND EVALUATION OF SUCH INSTITUTIONS BY SOME COMPETENT BODY FOR THE ACCOUNTABILITY OF HUNDREDS OF SIMILAR INSTITUTIONS IN THE GOVT SET UP.