ISLAMABAD, June 27: The government is taking steps for expansion and promotion of engineering industry to diversify its base and get into production of value-added products.

This was said by Prime Minister Shaukat Aziz while presiding over a meeting on Tuesday to review the performance of the Engineering Development Board (EDB) and development of engineering industry in the country.

The prime minister said that the steps taken by the government had paved way for a dynamic engineering sector by facilitating capacity expansion and competitive production.

“Last year automobile sector showed a growth of 30 per cent. Several parts manufacturing companies have set up plants in Pakistan,” he said.

The government was encouraging local production and technology upgradation both for import substitution and export enhancement, he said.

He said that Pakistan was fast becoming a regional hub for production and trade activities because of its geo-strategic location, availability of skilled labour and business-friendly policies.

He said that engineering sector should focus on modernization and innovative technologies to improve the quality and competitiveness of the locally manufactured products.

The EDB officials made a presentation on its performance and submitted proposals to expand and further promote engineering sector.

The prime minister was informed that economic recovery of the country had led to an increased demand for automobiles which was being met through enhanced production.

Prime Minister Aziz was informed that the market for cars had expanded to 200,000 cars. “Local production of cars has gone up to 160,000 in 2,006 from 80,000 cars in 1,999 and that of motorcycles from 90,000 motorcycles in 1,999 to 850,000.”

Mr Aziz was informed that expansion in automobile industry had led to a substantial increase in employment generation and presently 190,000 people were employed in it.