LAHORE: A Lahore High Court division bench on Wednesday suspended the operation of a single bench’s judgment wherein regulations of the Pakistan Engineering Council (PEC) meant to protect domestic engineering firms against their foreign competitors, especially Chinese and German firms, have been set aside.

The bench comprising Justice Abid Aziz Sheikh and Justice Asim Hafeez passed the stay order on an intra-court appeal (ICA) filed by the PEC against the decision passed by the single bench on July 30.

Representing the appeal, Advocate Usama Khawar Ghumman contended before the division bench that a single bench had allowed a petition by Siemens Pakistan, a German firm, challenging the regulations made by the PEC, being the apex engineering-sector regulator.

He said the PEC was created by the parliament in 1976 as the regulator of engineering profession and defender of Pakistan’s engineering-sector industry. Among its statutory objects, stated in the Council’s Act, is the protection of Pakistan’s engineers as well as the engineering sector industries.

The counsel stated that the PEC in 1987 enacted its bylaws 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.

He said the bylaws also placed some restrictions on the foreign firms bidding for mega projects in Pakistan. However, he pointed out that over the last decades, various foreign-owned firms started taking advantage of a loophole in the corporate laws.

The counsel said the single-bench set aside the bylaws and held that the regulator had no power to accord differential treatment to foreign engineering firms.

He argued if some restrictions were not placed on foreign constructors, Pakistan’s engineering profession could be crippled and the historic growth opportunity offered by the CPEC might be missed.

He asked the division bench to set aside the impugned judgment of the single bench.

The division bench suspended the single bench’s decision and issued notices to the respondents for Oct 7.

Published in Dawn, September 3rd, 2020