Govt decides to shut EDB on corruption charges

Move comes in the backdrop of delay in processing of new automakers’ investment cases

ISLAMABAD: In a surprise move, the government has decided to dissolve the Engineering Development Board (EDB), a wing of the Ministry of Industries and Production, for alleged involvement of its staff in corruption and malpractices as well as for creating hurdles in the way of billions of dollars in investment flows into the automobile sector.

According to officials, the EDB was required to implement the new auto policy, but it caused hurdles in the way of potential new entrants, who had already done 80% to 90% work and imported machinery for setting up manufacturing plants in Pakistan.

The EDB’s reluctance to give the go-ahead prompted the new players to lodge a complaint with the government.

The government had brought the new auto policy last year to stimulate investment in car manufacturing in an attempt to break the monopoly of existing three major players, who were offering vehicles at higher prices and counting on obsolete technology.

According to sources, the prime minister has given approval for disbanding the EDB with immediate effect. In a high-level meeting held last month, the premier was informed that the EDB was not performing its duties and had failed to take appropriate steps to regulate and promote engineering enterprises.

It was also noted that malpractices had been widely prevalent in the board and businesses were being exploited by its staff - a common norm in dealing with the enterprises.

The meeting was told 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.

After comprehensive discussions, it transpired that the EDB was not serving any useful purpose and had rather become a hurdle to good governance. Therefore, the prime minister decided to dissolve the board with immediate effect.

According to the officials, the EDB delayed the processing of investment cases of the upcoming auto players after existing carmakers approached the board with the argument that they were already manufacturing the cars that the new companies planned to produce.

It was a clash of interests that would lead to further delay in setting up new manufacturing plants, the automakers said.

In their meeting with the industries and production secretary on Tuesday, the aspiring new entrants also complained about impediments in the way of their investment plans. They were assured that their issues would be addressed.

Representatives of Kia Motors, Foton JW Auto Park, Habib Aneeq Private Limited, Hyundai Motor, Khalid Mushtaq Motors, Gulya Motors, Pak-China Motors, Eagle Automobiles, Lucky and United Automotive attended the meeting.

Published in The Express Tribune, June 8^th, 2017.

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