LHC suspends single bench’s judgment on PEC plea

LAHORE:A Lahore High Court division bench Wednesday suspended the operation of a single bench’s judgment wherein the regulations of Pakistan Engineering Council meant to protect domestic engineering firms from increasing stiff competition from foreign firms especially Chinese and German were 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 bench that a single bench had allowed a petition by a German engineering 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 a regulator of engineering profession and defender of Pakistan's engineering-sector industry. Amongst its statutory objects, stated in the Council’s Act, is the protection and protection of Pakistan's engineers as well as engineering sector industries. The counsel stated that the PEC in 1987 enacted its by-laws related to licensing 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 by-laws also placed some restriction on foreign firms bidding for mega projects in Pakistan. However, he pointed out that over the course of decades, various foreign-owned firms started taking advantage of a loophole in the corporate laws.

The counsel argued that the single bench set aside the by-laws and held that the regulator had no power to accord differential treatment to foreign engineering firms. He said if some restrictions were not placed upon foreign constructors, Pakistan's engineering profession could be crippled and the historic growth opportunity offered by the CPEC might be missed. He requested the division bench to set aside the impugned judgment of the single bench. The bench suspended the single bench’s decision and issued notices to the respondents for October 7.