Opposition: Industries ministry resists closure of EDB

Requests PM to reverse decision as it will hurt industrial business

ISLAMABAD: As various industries oppose the shutdown of the Engineering Development Board (EDB), the Ministry of Industries and Production has approached Prime Minister Nawaz Sharif, requesting him to reverse the decision.

Automotive manufacturers and different trade bodies have not welcomed the government’s move to dissolve the EDB, arguing it will hurt smooth business activities of the industrial sector.

According to sources, the Ministry of Industries has sent a summary to the premier through the Ministry of Finance, requesting him to withdraw the decision of closing down the EDB as it would harm different sectors of the industry.

“The EDB has performed its role to address issues concerning different industrial sectors of the country,” the ministry emphasised.

Sources revealed that the ministry prepared the summary after representatives of the automotive industry met with the minister of industries to press their case for allowing the EDB to continue to run and support industrial units.

Earlier, some business groups approached the prime minister and complained against EDB officials, alleging they were involved in corruption and were creating hurdles in the way of addressing the challenges faced by the industry.

Following the complaints, the Cabinet Committee on Energy, chaired by the prime minister, decided to dissolve the EDB, a wing of the Ministry of Industries and Production, for alleged involvement of its staff in corruption and obstructing the flow of billions of dollars in investments.

According to sources, in a high-level meeting held in May, 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. He gave approval for EDB shutdown with immediate effect.

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

The EDB had become a major impediment to improving the ease of doing business and creating enabling environment for industrial expansion and economic development, the meeting was told.

After comprehensive discussions, it transpired that the EDB was not serving any useful purpose and had rather become a hurdle to good governance.

Published in The Express Tribune, July 25^th, 2017.

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