MUSHTAQ GHUMMAN

ISLAMABAD: Engineering Development Board (EDB) is likely to be merged with Pakistan Industrial Development Corporation (PIDC), a Karachi based company, aimed at bringing improvement in the performance of the EDB which has failed to give desired results, well informed sources told Business Recorder.

With the merger of both organisations - subsidiaries of Ministry of Industries and Production (MoI&P) - Chief Executive Officer (CEO), EDB will have no role in the affairs of merged organisation. Presently, Shafqat Ranjha, an Additional Secretary of the MoI&P is heading PIDC after expiry of contract of Khalid Chadha.

According to sources, on November 25, 2015 Secretary Establishment Division presided over a meeting wherein it was decided to merge EDB with PIDC. Secretary Ministry of Industries and Production attended the meeting but CEO EDB was not invited. On November, just two days after the meeting a letter was issued for the merger. It is unclear, whether Ministry of Industries and Production in resisting this move or not.

“The letter says that EDB will be merged with PIDC. Another meeting on this issue will be held shortly in which, PIDC and EDB will give a detailed presentation,” the sources continued.

The sources further stated that since the incumbent government came into power, an exercise is underway to declare 29 organisations/entities/departments including the EDB redundant.

The internal affairs of the EDB are being run in a way that the General Managers, considered the backbone of the organization, are not being consulted at any level.

According to sources, EDB which has no legal authority, has prepared a five-year auto policy which is not supported by the Federal Board of Revenue (FBR) and Board Investment (BoI) led by Dr. Mifta Ismail. The EDB has also no power to collect a fee from any company in the name of registration but presently, the organisation is collecting money from vendors in the name of registration.

Official documents reveal that the Board of Management (BoM) in its 32nd meeting held on March 18, 2014 had approved the revenue generation plan in principle and decided that the plan may also be discussed with the auto sector at Auto Industry Development Committee (AIDC) and other concerned sectors before implementation. EDB wants to generate Rs 29 million.

EDB officials had informed the BoM that the organisation has been assigned a number of SROs related to engineering industry for implementation. As per requirements of these SROs, officials of the EDB have to frequently visit industries to verify their manufacturing facilities.

The main objectives/ ToR of the EDB shall be as follows: (i) develop a long term vision for the development of the engineering sector; (ii) formulate and coordinate all government policies relating to the engineering sector; (iii) develop an overall strategic engineering development plan; (iv) promotion of exports; (iv) enhancement of technical training; (vi) formulate polices and guidance for utilization of technology development and engineering fund; and ( vii) management of deletion policy.