MUSHTAQ GHUMMAN
ISLAMABAD: Reverting the decision of Abbasi-led administration to dissolve the Engineering Development Board (EDB), the federal cabinet on Thursday decided to revive EDB, a decision attributed to special efforts by the Ministry of Industries and Production.
In May last year, the Cabinet Committee on Energy (CCoE) headed by the then Prime Minister Shahid Khaqan Abbasi had decided to dissolve EDB over accusations of rampant corruption. The federal cabinet on July 13, 2017 endorsed the decision of the CCoE.
Addressing a press conference, Abdul Razak Dawood said that the government has revived EDB with the approval of cabinet, adding a notification has been issued in this regard. He, however, did not reply to a question regarding strong appreciation of dollar against Pakistani rupee. “I will not answer about dollar,” he said.
He said that engineering industry does not play the required role in exports and local production. The base of Pakistan’s engineering industry, like cars, motorcycles, refrigerators, engineering services, auto parts, Nespak Gujrawanwala, Gujrat, is very minimal.
He said that EDB will be completely revamped and a new Board will be constituted after which a new plan will be formulated to take the engineering industry ahead. The focus will be from heavy industry to light industry. He said the government will go for imports substitution after which a critical analysis of each industry will be done meant to export engineering goods. This will increase the country’s respect and confidence. “We have to prepare a plan to exports our motorcycles, refrigerators, air conditions and washing machines (white goods) and auto parts,” he continued.
A questioner told the advisor that the incumbent acting CEO EDB was allegedly responsible for its dissolution as he was head of tariff section when local and international companies complained to the former government, asking what action would be taken against him. The advisor replied that he would see whether it is a problem of incompetence or otherwise.
“The EDB will be revamped and a new Board will be constituted and strengthened,” he said adding that the EDB played a great role after its establishment. It used to recommend the then CBR on tariff,” he added. Indigenization program was also a success story. He said 90 percent refrigerators and motorcycles are localized whereas cars are 50- 60 percent localized which is a good thing. The EDB will also be given the role to improve local engineering through new technology i.e. surgical and auto parts.
When asked since Pakistan’s exportable base has shrunk, how exports can be increased, he replied that country is facing deindustrialization which has to be corrected. He further stated Pakistan has everything for exports and Pakistan should focus on it.
“We must do nothing but export, export and export. If there is shortage, it is easy to cover domestic market but will be difficult to capture export market. Export everything and do it even if there is shortage in the country. The country will face shortages but we will manage it,” he continued.
Dawood further stated that Pakistan’s position in cost of doing business and ease of doing business has declined but he would improve it as it is his responsibility.
Talking about KE, Razak Dawood who is the chairman of the committee said that the committee has not reached any conclusion on this issue.
On PSM, the advisor said that he visited Karachi and the government is looking at different options. “As I get options from PSM, we will look into it,” he added.
