A spokesperson of Engineering Development Board (EDB) in its clarification about a news published in Business Recorder that EDB's BoD refused to approve the Hanover expenses said that Pakistan Industrial Development Corporation (PIDC) had allocated Rs 60 million for the event.
It further said that encouraged by the positive outcome of participation in 2005, the EDB doubled the number of exhibitors during 2006 in a bid to connect maximum number of engineering companies to the global supply chain.
The PIDC's board of directors (BoD) allocated a fund of Rs 60 million from its promotional activity budget to support this event. The spokesperson clarified that against the total spending of Rs 45 million on organising the event, the private sector contributed significant amount in terms of registration fee, air fare, boarding and lodging, promotional material and shipment of exhibits highlighting an excellent example of public-private partnership.
He said that since the budget for Hanover Messe 2006 was sanctioned by the PIDC's BoD, the approval of expenditure incurred on the event falls under the purview of PIDC's BoD and not EDB. The Business Development Committee (BDC) of EDB approved by the PIDC BoD in its 67th meeting held on September 15th, 2005 was mandated to approve expenditure for Hanover Messe 2006 and GM (Finance), EDB was part of the process relating to release of funds for various activities, he stated.
He further clarified that only four officials from EDB and MoIP & SI who were actively involved in organising the event accompanied the contingent.
The spokesperson said that the unprecedented support extended to EDB by PIDE, MOC, COIP&SI and EPB was instrumental in achieving the desired results. He stated that Hanover Messe 2006 has triggered numerous business development opportunities for the engineering sector of Pakistan.
These include JV agreement between R&D Engineering Company and Menzing Industries of the Netherlands, technical collaboration between Simcon Industries and Menzing Industries, technical collaboration between Fastube of Pakistan and Fast, Germany.
In addition, quite a large number of business enquiries received are currently being pursued by the Pakistani companies and are in various phases of negotiations.
The Business Recorder reporter adds that the ministry is mum on the points raised in the report that the EDB has failed to achieve any orders as a result of their participation in Hanover and about seeking expenses approval from the board of EDB in its recent meeting.
Moreover, the spokesperson has not touched the criticism by some board members describing the participation in the exhibition a futile exercise. They also wanted to know the orders Pakistan engineering sector had received rather than the signing of memorandum of understanding (MoU).
Further, the meeting had expressed its annoyance at the composition of the committee, headed by Nabeel Hashmi, which had approved the expenses while keeping the GM (Finance) away from the whole process and subsequently changes in its composition were made. The ministry is also silent on the changes made in the composition of the BDC. Similarly, the ministry is silent about the note of dissent demanded by member representing commerce ministry on the board that composition of delegation to fairs involving government funds, as per rules of business, falls under the purview of the commerce ministry.
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