KARACHI: Another tussle is shaping up between the government and the business community – this time, involving manufacturers.

Prime Minister Nawaz Sharif has issued a directive to disband the Engineering Development Board (EDB) and disperse its powers amongst the Ministry of Industries, Federal Board of Revenue (FBR) and Ministry of Commerce.

Members of the EDB board of management, excluding those in government, are of the opinion that the board should be strengthened and restructured, not shut down.

The directive was discussed in the 35th board of management meeting of the EDB on Monday in Islamabad. It was chaired by Federal Minister for Industries and Production Ghulam Murtaza Khan Jatoi.

An auto-part maker who attended the meeting said the ministers and other board members representing the government stayed silent on EDB’s fate. The government machinery only listened to the concerns and suggestions of other board members.

He said that after taking feedback from the members who represent the private sector mainly, the Ministry of Industries will submit its summary to the prime minister.

The private-sector members were of the view that the engineering sector could play a bigger role than the textile sector. They said the worth of the engineering goods’ market in the world is $4 trillion compared to the $500 billion textile market, which reflects the strength of the engineering sector.

The board members asked Mr Jatoi to convince the prime minister not to close down the EDB as the industry had started showing growth in the last three years. They also sought a meeting with the premier so that they could ask him to reverse the decision.

Representing the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Pakistan Association of Automotive Parts and Accessories Manufacturers in the meeting, M.A. Jabbar said he conveyed the stance of the FPCCI to Mr Jatoi on the proposed shutdown of the EDB.

During the meeting, he read the resolution of the FPCCI, which urged the prime minister to review the proposed dissolution of the EDB. He said the disbandment of the EDB will hurt industrialisation and, in particular, the value-added domestic engineering manufacturing industry.

The resolution said the EDB needs to be strengthened and restructured to act as a one-window facility for the engineering industry. Mr Jabbar said the reported delay in the disposal of cases by the EDB in ascertaining domestic content cannot serve as a basis for the proposed dissolution of the body.

China-Pakistan Economic Corridor (CPEC) power projects of over $40bn have been exempted from duties and taxes even on imports that are already listed as locally manufactured goods and can otherwise be locally produced, he said.

He said the role of a professional body like the EDB has been further diluted by shifting its due professional diligence to the Ministry of Water and Power in respect of the import of engineering goods for power projects. Mr Jabbar termed the move to close down the EDB “anti-industry”.

Sources said Mr Jatoi during the meeting stuck to his point that the Ministry of Industries will look after the auto and two-wheeler sectors. Likewise, tariff issues will be looked after by the FBR, free trade agreements by the Ministry of Commerce and standardisation by the Ministry of Science and Technology, he said.

Published in Dawn, July 11th, 2017