KARACHI: Auto assemblers and their vendors have come for the rescue of Engineering Development Board (EDB) following Cabinet’s decision to dissolve the body, while another auto group has hailed the decision.

Interestingly, the government on Wednesday decided to disband the EDB but on Thursday the Economic Survey 2017-18 pointed out six initiatives of the board for the engineering sector.

Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Iftikhar Ahmed was quick to send a letter to Prime Minister Shahid Khaqan Abbasi on Thursday saying the hasty winding up of EDB has shocked parts manufacturers having membership base of over 400 tier-1 units and more than 3,000 small and medium enterprises throughout the country.

EDB was established under the banner of Planning Commission with a vision to boost up industrial sector in the country. In the initial phase, the board’s performance remained excellent as it became a pivot of industrial growth in the country and one window facilitation centre for industry, Ahmed said.

EDB played the role of a bridge between industry, Ministry of Commerce (MoC), Ministry of Industries and Production (MoIP) and Ministry of Finance. It regulated the issuance of input-output ratio certificate for smooth running of automotive/engineering industry and formulation of policies in consultation with major stakeholders.

“Paapam is against the disbanding of EDB and feels decisions made in haste often backfire,” he said, adding that this measure may tantamount to depriving automotive/engineering industry from one window facility. Iftikhar said the appointment of a competitive CEO can put on track this ailing institute that still possesses the capacity to augment the engineering base of Pakistan.

Pakistan Automotive Manufacturers Association Director General Abdul Waheed Khan has asked PM on April 27 to immediately review the dissolution of the EDB or announce a successor mechanism/organisation to take over the existing day-to-day affairs seamlessly or its absence would create a vacuum.

EDB provided support to the auto industry’s operations and also controlled and regulated the growth of auto industry since the early nineties, he said. He pointed out that this is the fifth consecutive year when the auto industry, comprising assemblers and part manufacturers, has grown by double digits, improving its position from sixth to third in the large-scale manufacturing sector.

“Until EDB’s dissolution is passed by the relevant authorities and/or a new body/mechanism is announced, the MoIP must itself step in as it is imperative to continue the function and activities of the EDB in one form or another,” stressed Khan, adding that no announcement, communication or legal cover would significantly shake confidence just as the interim government is about to step in.

“How and by whom the activities will continue to be carried out must therefore be addressed, shared and communicated in a responsible manner to avoid embarrassment and undue harassment. The final solution or body to look after the affairs of the auto industry must kindly have the input and consent of all the stakeholders of the local industry,” Khan concluded.

On the contrary, Association of Pakistan Motorcycle Assemblers Chairman Mohammad Sabir Sheikh said the Cabinet has taken the right decision at a right time to dissolve EDB as internationally the auto industry is now moving towards electric cars, bikes and other vehicles for which the government has taken various decisions in Budget 2018-19.

He said the existing assemblers of cars have shown no desire to introduce any locally produced electric vehicles and they may create hurdles if EDB is again allowed to operate. Sabir clarified that EDB was closed down due to corruption as the board was favouring some assemblers and their vendors.

The Economic Survey 2017-18 said EDB is an apex government body under MoIP entrusted to strengthen engineering base in Pakistan. The body focuses primarily on the development of engineering goods and services sector on modern lines, enabling them to become technologically sound and globally integrated.

To present and promote a realistic image of Pakistan as an emerging destination for doing business, EDB is publishing its fresh edition of Cost of Doing Business in Pakistan 2018.

It will be distributed to Pakistan’s commercial consulates abroad, all ministries/divisions and attached departments of government, banks, chambers of commerce and major industries, the survey said.

In one of the EDB’s initiatives, Pakistan hosted 28th annual meeting of the Regional Planning Council (RPC) of Economic Cooperation Organisation members, arranged by Ministry of Planning, Development and Reforms. The board presented comprehensive proposals/briefs for committee on trade and investment as well as agriculture, industry and tourism, the survey added.

On invitation of Ministry of National Food Security and Research, EDB participated in the one-country exhibition (Belarus) in Islamabad on Nov 15, 2017. Back to back meetings were held with Belarusian trade delegates regarding joint ventures/business cooperation in engineering sectors and delegates were briefed about Auto Development Policy 2016-21.

EDB prepared and submitted the proposals/inputs on development and sustainable growth of local engineering industry to make it competitive for the fast-changing world in order to achieve the goals envisioned in Vision 2025.

MoC had initiated detailed working on the upcoming Strategic Trade Policy Framework (STPF) 2018-23 for which they had invited the all stakeholders for inputs. EDB approached all the relevant associations and industries for their proposals and accordingly received responses were evaluated and submitted for incorporation in STPF 2018-23.

The board had set up stalls in the Pakistan Auto Show 2018, which was held on March 3, 2018.

Published in Dawn, April 29th, 2018