FPCCI terms EDB abolishment illogical, unjustified

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concern over the government’s decision to abolish Engineering Development Board (EDB) and termed it illogical and unjustified, a statement said on Wednesday.

In this regard, Zubair F Tufail, president of the FPCCI had convened a meeting of stakeholders to discuss the issue at the Federation House, Karachi.

During the meeting, the stakeholders said the government took this decision unilaterally without consulting the FPCCI and other trade bodies.

The Engineering Development Board was playing a fundamental role in the promotion of the engineering sector, protection of domestic industry and strengthening it by giving incentives, they said.

The Engineering Development Board was an affiliate department of the ministry of industries established in 1995, with an aim at strengthening the engineering sector, promoting exports, increasing technical training and enabling import substitution, they added.

The board has presented two auto policies, ie, in 2007 and 2016, which enhanced auto assemblers from three to 55. The proper implementation of auto policy will develop competition and bring opportunity of technology transfer.

The stakeholders said since 2010, the government has failed to give due importance to EDB or the engineering sector and between 2012/15 EDB was operated without a CEO.

The stakeholders also stressed on the need for transparency, efficiency, expertise and merit in EDB to fulfill the objectives of strengthening the engineering sector in Pakistan and integrate it with the world market to make it the driving force for economic growth, as the future of Pakistan depends on the industries, particularly on engineering, chemical and information technology.

These industries have huge potential for contributing in the economic growth and employment generation, they said.

The closure and shifting the responsibility of EDB will disrupt the large-scale manufacturing; especially the auto industry and will further complicate the situation, including the creation of impediments in investments in the auto sector, they said.

Tufail ensured his full support and assistance to the stakeholders and said that the FPCCI will try to convince the government continue with the Engineering Development Board with complete restructuring of its board of directors by including the representatives from private sector, Board of Investment and Pakistan Engineering Council.

The meeting also decided that the FPCCI will take up the matter with the president, prime minister and finance minister of Pakistan in the coming week.