KARACHI: The Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) is moving court over the government’s decision of dissolving Engineering Development Board (EDB).

“The government has taken a hasty decision and vendors have decided to knock the doors of the court against EDB’s dissolution,” Senior Vice Chairman Paapam Mohammad Ashraf Sheikh told Dawn on Saturday.

“We have completed legal formalities with the help of lawyers to file the case in the court next week,” he said.

The closure of EDB can sidetrack manufacturing which has progressively made great strides in bringing new methods and technology to Pakistan. EDB was the only institution looking after the entire engineering sector, whereas industries like textile have an entire ministry dedicated to them.

Mr Sheikh said that with extensive interactions with the EDB over the last 22 years, Paapam has always found the board to be managed by professionals and educated people who put industrial concerns as top priority.

The government’s claim is unjustified that the EDB serves no useful purpose, he said, adding that the board is the only platform that helped the industry grow and develop long term vision for the development of the engineering sector, formulated and coordinated all government policies relating to the engineering sector, develop and overall strategic plan, promoted export, resolved appeal for grievances and managed deletion policy.

He said when EDB was formed in 1995, hardly 10-15 per cent of parts for passenger cars were produced locally. “Today this figure has touched 70pc,” he added. Similar trends were witnessed in case of motorcycles, trucks, buses and tractors. The industry achieved these milestones only due to diligent implementation of deletion programmes and tariff-based systems by the EDB.

EDB operations were severely affected as the government for over three years did not appoint CEO, so ineffective actions were on part of the government, he said.

Due to aggressive localization, import substitution now saves the country over three billion dollars annually. Moreover, the EDB also shielded industry against the unfavorable conditions in FTAs and allowed a market and vendor base to develop to make manufacturing in Pakistan an attractive prospect for new entrants.

He said EDB played a key role to facilitate ease of doing business and as a result, new players including Hyundai, Kia Motors, Volkswagen, Isuzu, Nissan, Renault etc. are coming in the country, thus enhancing the market and competition.

Published in Dawn, May 20th, 2018