KARACHI: The federal cabinet headed by Prime Minister Shahid Khaqan Abbasi Wednesday dissolved the Engineering Development Board (EDB) working under the supervision of Ministry of Industries and Production, it is learnt.
EDB was the apex government body working under the Ministry of Industries and Production entrusted to strengthen the engineering base in Pakistan.
The decision has been taken over the serious reservations of the government for delaying approvals of CPEC power projects and supposedly involved in rampant corruption, the sources claimed.
“This led to a directive from the Prime Minister to dissolve the organization since it was no longer able to serve any useful purpose,” they said.
Interestingly, through an amendment made in the Finance Bill 2016-17, the requirement of EDB’s verification for availing duty exemption has already been removed for IPP projects above 25MW.
In fact, EDB’s role for processing cases of power projects over 25MW has been handed over to the Ministry of Water and Power.
On the contrary, the organization has played a significant role in nurturing the domestic auto industry and promoting the growth in the localisation of auto parts in Pakistan (and saving valuable foreign exchange for the country).
To its credit, EDB has strict implementation of deletion programs in the 1990s, preparation of a WTO-compliant Tariff Based System and formulation of the first auto policy in 2007, ensuring continuous growth in localisation of automobile components, diligently monitoring that locally produced parts are not imported at concessionary rates of duty, revival of trucks/buses manufacturing by controlling smuggling/misdeclaration, preparation of the second auto policy in 2016 and efficient management of auto sector regulations (including SROs 655, 656 & 693).
The government has failed to give due importance to EDB or the engineering sector. EDB was kept under-staffed and under constant pressure to operate with limited resources and even operated without a CEO for almost 3 years between 2012-2015. Finally, once again, EDB has been without a permanent CEO since March 2017.
Introduce reforms rather than shut down the EDB
ISLAMABAD: The Engineering Development Board (EDB) was shut down after complaints by the business community over its non-cooperative behavior in facilitating investments.
The surprising bit, however, is that no alternatives were presented in the meeting that was held to address the issues of the EDB. Is it really the only solution Pakistan could come up with?
The EDB had been working under the Ministry of Industries and Production. But when the auto policy was drafted, the ministry was not part of the core team that finalized decisions.
Engineering Development Board: an obituary
While there is a lot of hue and cry about the EDB, it is a fact that Pakistan’s engineering and auto sectors have grown in the last few years.
Several new entrants are gearing up to penetrate Pakistan’s auto sector and consumers are looking forward to having a wider range of choices.
Unfortunately, Pakistan’s economy has always depended on services and agriculture sectors for growth, and the importance of the engineering sector was not truly realized until 1995 when the EDB was first established.
Role of the body
Till recently, it was the mainstay of the engineering industry.
All industry-related issues were referred to the Board where technical input was required in various policies; whether it was protection against imports or foreign competition.
The local industry has had a dire cash flow issue due to dearth of financial infrastructure, skilled manpower, and energy breakdowns.
At present, there has been no alternate arrangement made to deal with the industry.
Four new entrants have been granted Greenfield status, a move set to attract $2 billion as investment. One window operations of EDB shall be fragmented in case activities are assigned to various organizations.
Considering the technical expertise, there is a need for a dedicated body for implementation of the auto policy and further protect and spruce engineering based industry of Pakistan.
The absence of a dedicated body shall hamper operations of approved investments and discourage prospective investors.
The transition may de-rail the system with serious consequential business loss to the industry and exchequer. It would require a pool of technical professionals with a good understanding of the local manufacturing industry.
A better solution may be reforms. The government should conduct due diligence of the working of EDB and restructure it rather than dissolving it. The government should start inquiries against those officials who were involved in corrupt practices and were causing embarrassment.
The EDB should be empowered and interference should end. The practice of appointing heads on political basis should be end and selection of professionals should be made on merit. Otherwise, shutting down any entity on basis of self vested interests will not result in any positive change. The solution is to bring reforms in state run entities to ensure good governance and transparency to expedite functionality.
So unfortunate. Such arbitrary decisions cause damage to the state
I endorse the comments made by Engr Nasir Muhmood on the sad demise of Engineering Development Board, catering to the development of auto industry in particular and overall engineering industry in general. This happened due to incompetent and indifferent attitude of those who matter in this context. As a matter of fact, this organisation was an innovative idea of an original organisation EXPERTS ADVISORY CELL, MINISTRY OF INDUSTRIES & PRODUCTION and accordingly EAC was disbanded and replaced by EDB.
Regretfully, Tragedy do not end over here. There was another organisation in the name of INVESTMENT ADVISORY CENTRE OF PAKISTAN, working under the Ministry of Industries and production with head office at Karachi and six zonal offices and was disbanded in 1993. As the country is run by so called educated class, the plight of good governance is obvious. M.aslam Ch
I fully endorse the view of revival of EDB. This organisation has contributed lot for the local industries.
In 1990 ,IPPs eras ,the local electrical capital goods industries suffered big loos due to duty free locally made equipment was allowed against IPP projects.e.g cable ,Transformer ,switchgear etc.
EDB was serving in the interest of local industries. In PML N last 5 years ,7000-10,000Mw power plant was
constructed, again ,there is no contribution from Local Electrical capital goods industries.
Corruption & Bad goverence has taken over all the govt depatment, Why EDB was single out.
Because they were putting resistance on import of engineering goods from CHINA ,which are being produce locally.They were not including these locally produce goods INFTA list.
I welcome ,the Move of Present Goverment to revive EDB.
We must encourage local Indusrialisation, Transfer of technology , R&D activities in Engineering , The only solution for Job creation & sustainability for our 200M people employment is strengthing Engineering industries.Made in Pakistan should be our slogan in all our purchasing.