LAHORE: The Lahore High Court will hear on Tuesday (today) an intra court appeal (ICA) by Pakistan Engineering Council (PEC) challenging a single bench’s verdict that set aside its regulations meant to protect Pakistani companies from increasing stiff competition from foreign firms especially Chinese and German.

The PEC filed the appeal through advocates Umar Gillani and Usama Khawar Ghumman against the decision passed by Justice Shams Mahmood Mirza as a single bench on July 30.

The single judge had allowed a petition by Siemens Pakistan, a German firm, challenging the regulations made by the PEC being the apex engineering-sector regulator.

The ICA explains that in 1976, PEC was created by the parliament as the regulator of engineering profession and defender of Pakistan’s engineering sector. Amongst its statutory objectives, stated in the Council’s Act, is the protection of Pakistan’s engineers as well as engineering sector industries.

Therefore, in 1987, the PEC enacted by-laws related to licencing of constructors and operators categorising firms into 27 sub-disciplines ranging from road construction and dam construction to air-conditioning and elevator construction.

The appeal says the by-laws also placed some restriction on foreign firms bidding for mega projects in Pakistan. For instance, foreign engineering firms are bound to partner with a Pakistani construction firm. The aim was to encourage the transfer of technology and skill from foreign firms to Pakistani joint venture partners, it adds.

However, it argues that over the course of decades, various foreign-owned firms started taking advantage of a loophole in corporate laws.

It says the loophole gained currency during the China-Pakistan Economic Corridor (CPEC) when many international firms were able to bypass the spirit of the regulations and got themselves registered as local firms.

The appeal argues that the single bench struck down the by-laws and held that the regulator had no power to accord differential treatment to foreign engineering firms.

Published in Dawn, August 25th, 2020