Cabinet tells MoI&P to expedite

ISLAMABAD: The federal cabinet has directed the Ministry of Industries and Production (MoI&P) to expedite implementation of its decision regarding dissolution of Engineering Development Board (EDB), a hub of malpractices, well-informed sources in the Ministry told Business Recorder.

The federal cabinet in its meeting held on July 13, 2017 ratified the decision taken by the Cabinet Committee on Energy (CCoE) on May 29, 2017 which decided dissolution of the Board with immediate effect.

Later, the Prime Minister directed that a summary be submitted for the Cabinet for reconsideration of its decision, in case MoI&P felt retention of EDB was imperative.

The sources said, the cabinet was informed on April 25, 2018 that the MoI&P was in favour of its retention as there was a dire need to have an entity like EDB to foster technological development, promote R&D and create an enabling innovative environment with quantifiable and empirically observable metrics based on key performance indicators by cutting edge capacity to augment and enhance the engineering base of Pakistan. The Board was designed not only to serve as the regulatory arm of the MoI&P but was also tasked with examining and scrutinizing all the MoUs related to trade policy. The Board’s pragmatic efforts and solution-based interventions in business plans, effectively countered the mercantilist and myopic tendencies of many pressure-groups with vested interest. It was also a prime source of evaluating the engineering processes and reliability of products with respect to consumer welfare. The Board was the only organisation in Pakistan which acts as the nucleus of a triple-helix model.

A summary was submitted to request the cabinet to review its earlier decision regarding disbandment of the EDB as it would adversely impact on the industrial sector with deleterious long-term consequences and collateral damage to the nascent innovation system.

However, during discussion in the cabinet, it transpired that the EDB was not serving any useful purpose and had become a hurdle to good governance. The cabinet argued that the auto policy was the major domain of EDB but the organisation had no mechanism to monitor and execute the auto policy.

“The EDB had failed to show any performance for promotion of auto sector, except lavish expenditure and perks and benefits. The Board was not performing any useful function, in terms of regulation or promotion of engineering enterprises, and malpractices had become endemic in the Board,” sources quoted one of the Ministers’ as saying.

It was also observed that the EDB had become a major impediment to improving the ease of doing business and creating an enabling environment for industrial expansion and economic development.

“In the name of industrial development, the EDB actually played a role in hampering industrialization by imposing restrictions on import of several products, parts and raw materials,” said another Minister.

The cabinet, however, felt that in the wake of CPRC projects the role of enabler was pivotal for promotion of engineering industry in the country and such role could be that of research and advisory body instead of a regulator.

Winding up discussion on the MoI&P summary, the cabinet rejected the summary and directed the Ministry for expeditious implementation of the earlier decision of the cabinet regarding dissolution of the EDB.

Insiders claim that the Ministry has consulted employees and two former CEOs of EDB, who are “informal” consultants on auto sector matters to the Additional Secretary Incharge, in addition to PAMA, PAAPAM and Chairman PSM Board who had made an effort to grab the position of CEO EDB during the tenure of Abdul Ghaffar Soomro (for Secretary MoI&P) and incumbent Member Election Commission from Sindh.

According to the claims of an insider, the representatives of PAMA and PAAPAM made it clear that they would not hesitate to approach the courts to block the cabinet decision.—MUSHTAQ GHUMMAN