PM dissolves Engineering Development Board

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.