ISLAMABAD, Aug 24: The government on Friday approved administrative merger of Pakistan Automobile Corporation (PACO) with Pakistan Industrial Development Corporation (PIDC).

The decision was taken in a meeting of the board of directors of PIDC headed by Minister for Industries and Production Jahangir Khan Tareen.

An official announcement issued here said the board also decided to support the Aik Hunar Aik Nagar (AHAN) initiative taken by Smeda with the objective to support the development of backward areas as well as to increase the living standards of those areas through their skill development and training.

In this connection, the board decided to support the company specially created for this initiative by extending funding of Rs200 million from PIDC.

Presentations on skill development initiatives of priority industrial sectors such as forge foundry and engineering, chemical and fertiliser and automotive were also given to take some policy decisions.

The board agreed to extend maximum support to these priority industrial sectors. It was consensus of the board that for fast and rapid industrialisation these sectors were required to be provided maximum support and assistance in skill development and training.

It was decided to promote these sectors through formation of sector development companies on public/private concept.