Recommendation: wind up PIDC

An inter-ministerial panel on redundant organisations headed by Secretary Establishment has recommended the government to wind up few organisations including Pakistan Industrial Development Corporation (PIDC). However, Secretary Industries has succeeded to secure independent status of Engineering Development Board (EDB).
Official documents available with Business Recorder reveal that the parameters devised for identification of an organisation as redundant includes overlapping/duplication, technological advancement, devolution of functions and decrease in the role. Based on these parameters, the organisations have been categorised into abolition, merger and restructuring.
Stale Engineering Corporation (SEC) and merger of Engineering Development Board (EDB) with Pakistan industrial Development Corporation (PIDC): the participants were apprised about the assigned role of SEC. The Secretary MoI&P has generally agreed with the status/view point presented in the working paper, however, clarified that supervising different industrial/manufacturing units by M/o Industries & Production is not possible and a proposal is under process to make SEC a viable entity and to manage the affairs of engineering units. It was emphasized that the role of SEC needs to be strengthened and the major unit ie Heavy Mechanical Complex, reporting directly to M/o Industries & Production, is also being brought under the control of SEC and proposal is also under consideration to club few other units with it to make it financially viable Corporation.
The panel decided in the meeting that a new road map be prepared by the administrative Ministry in respect of SEC and present in the next sub-committee meeting. The meeting was apprised about the proposal for merger of Engineering Development Board (EDB) and Pakistan Industrial Development Corporation (PIDC). The Secretary M/o Industries & Production highlighted that EDB is the technical arm of Ministry as it provides valuable input on all the engineering aspects to the Ministry. He was of the view that EDB has played a significant role in the formulation of Industrial Policy, Auto Policy whereas the role of PIDC has been marginalized over the years and its winding up can be considered.
The prospect regarding merger of SEC and EDB also came into consideration, to which the Secretary clarified that the former mainly deals with the manufacturing concerns whereas the later assist the Government in policy formulation, therefore, their merger may not be fruitful. After detailed deliberation it was decided that EDB may continue its functions independently whereas PIDC may be considered for winding it up as proposed by the Secretary, M/o Industries & Production.
The Secretary of the administrative Ministry has also apprised that a detailed working on the winding up of National Fertiliser Corporation (NFC) and National Fertiliser Marketing Limited (NFML) is also on the addenda of the Ministry. The panel decided that PIDC may be considered for winding up where EDB may continue independently.
The participants of the meeting were apprised that the agriculture have been devolved to the provinces as a result of devolution of business to the provinces under the 1 8th Constitutional Amendment. The requirements of federal government under these subjects, if any, can be assigned to a small cell either in the main Ministry or PARC as the provincial governments have their independent set up in each sector and its continuation at the federal level will result in duplication and overlapping.
Secretary, Ministry of National Food Security & research has viewed that the 18th Amendments in the Constitution has no baring affect on the subjects as the concurrent list does not include the word agriculture. He was of the view that nothing has been devolved to the provinces in respect of the functions assigned to Agriculture Policy Institute (API) Pakistan Oilseed Development Board (PODB) Federal Water Management Cell (FWMC) Fisheries Development Board (FDB) and) Livestock & Dairy Development Board (LDDB). He further added that his team will separately discuss item wise detail and the rational for continuation, rather strengthening of these organisations except Pakistan Oilseed Development Board for which he agreed that the later may he abolished subject to adjustment of its employees in oilier organisations.
He highlighted the achievement of FDB that has recently revolutionised by development of shrimp farming and other organisations ie API, FWM Cell and LDDB ware also termed as brainchild of the Ministry which is playing significant roles. The participants were of the view that these organisations were identified on the basis of predetermined parameters of devolutions and overlapping of its functions with the provincial governments. Viewed in this context, the chair observed that these organisations may be reviewed with reference to the pretext of devolution and functional requirements, if any, at the federal level. The administrative Ministry will provide all relevant documents in this regard. As far as Pakistan Oilseed Development Board is concerned, the same will be abolished and its employees will be adjusted by the Establishment Division. Similarly, the functional requirements for placement of P0DB employees in ICT and FATA will also be considered in consultation with administrative Ministry.
It was unanimously agreed that PoDB may be abolished and its employees may be adjusted by the Establishment Division in consultation with administrative Ministry. The participants of the meeting were apprised that after the revised system of financial control and budgeting notified by the Finance Division, the Department is left with almost negligible role of supplying standardised forms. The filled in positions of the department are also general in nature without any tangible work. The representative of the Cabinet Division, being administrative Division also agreed with the proposal that the department may be abolished.
The sub committee was unanimously agreed that Department of Stationary & Form may he abolished. The participants of the meeting were apprised that the organisation was established to manage abandoned properties including its maintenance and recovery of rents. It was observed that maximum property of the organisation in the shape of houses, shops, plots, agriculture land etc has been disposed off by the organisation over the years. The left over property is almost negligible. The participants agreed that keeping in view the reduced workload of the organisation, the same may be restructured. The representative of the administrative Division also agreed with the restructuring proposal.
It was unanimously agreed that abandoned properties organisation may be restructured.
The participants were apprised about the similarity in functional areas of both the organisations under the administrative control of the same Ministry. Marine Fisheries can effectively perform its functions of fishing, surveys and biological research on various aspects of fisheries by using the infrastructure and expertise available at the Marine Biological Research Laboratory. The merger of both the organisations will not only complement in functional operations but will also enhance their efficiency and effectiveness. The representative of the administrative Ministry also endorsed the proposal for merger of both the Organisations. The committee unanimously decided that Marine Fisheries Department and Marine Biological Research Laboratory may be merged.
The panel also decided that National Transport Research Centre may be restructured and the proposal by administrative Ministry in respect of its new structure with time line targets will be placed before the sub-committee. The participants of the meeting were apprised about the role and dismal performance of the Pakistan horticulture Development & Export Company (PHD&EC) particularly from 2013 onwards as apparently no tangible contribution on the part of Company has been observed. The representative of the administrative Ministry attributed the dismal performance of the company due to political compulsions in the past. He pointed out that a restructuring plan of the organisation is under process in the Ministry and several steps have been taken so far including constitution of new hoard, recruitment process of new Chief Executive Officer, downsizing after conducting internal restructuring exercise in order to make it a vibrant organisation. The chair asked the representative to share their plans, goals, timeline target and linkage of its contribution to export. On receipt of the requisite information, the proposal would he reviewed again.
The committee agreed that the proposal for abolition of Pakistan Horticulture Development & Export Company may be deferred till a restructuring plan of the organisation including timeline targets is received from administrative Ministry which will be placed before the sub-committee for deliberations.
The participants of the meeting were apprised about the role of the organisation engaged in development, design and maintenance of IT system by using different applications and internet portal for Customs and Inland Revenue transactions, it is charging Rs 799 million from FBR. It was also observed that the sanctioned strength of 1200 posts is on higher side and need restructuring. The representative however pointed out that internal restructuring of the organisation has been made where by the charges from FBR have been brought down from Rs 800 to Rs 600 million and sanctioned strength from 1200 to 960 posts. The chair agreed with the internal restructuring made by the administrative Division.
It was decided that since internal restructuring of the organisation has already been made therefore the PRAL may be excluded from the list of restructuring organisations. The participants of the meeting were apprised about the role assigned to the organisation which includes promotion of employment opportunities and to prevent exploitative recruitment practices; and to safeguard the interest of employees as well as employers. However the participants viewed the performance of the organisation during the period 2011-13 wherein it was observed that share of the organisation in respect of export of human resource from Pakistan was less than 0.2% of the total export. Viewed in this context, the participants were of the view that the organisation may be restructured with new vision and timeline goals/targets After detailed deliberation, the Chair agreed to (lie restructuring of the organisation so as to make it a vibrant and proactive Organisation with emphasis on multidimensional focus on export markets.
It was unanimously agreed that requires restructuring of Overseas Employment Corporation may be carried out for which targets with timelines would be presented by the administrative Ministry in the next sub-committee meeting.
The participants of the meeting were apprised about functional/operational linkage and similarities between Benazir Income Support Programme and Pakistan Bait-ul-Mal. The target groups including objectives of both the organisations are almost the same. It was proposed that merger of both the organisations will not only complement in functional operations but will also enhance their efficiency and effectiveness. However, the representatives of the organisations were of the view that there is a difference in the operations as well as target groups of both the organisations. BISP basically deals with the poverty management and distributes cash stipends to around 5.1 million beneficiaries whereas the focus of Pakistan Baitul Mall is on rehabilitation Centres, Vocational Centres, patients' treatment and child program etc.
The representative of the Prime Minister's Office pointed out about health insurance scheme which is under consideration of the government. He was of the view that till finalisation and promulgation of the scheme, the merger may be pended for the time being. After detailed deliberations, it was decided that both the organisations may continue their functioning independently.
It was decided that Benazir Income Support Program and Pakistan Bait-ul-Mal may continue its operation independently. Merger will be reconsidered after promulgation of the proposed health insurance scheme. The meeting was apprised about the allocated functions of both the Authorities. ERRA is focused on reconstruction and rehabilitation of those areas which have been affected by the deadly earthquake of 2005, whereas, NDMA covers across the country a broad spectrum of natural disasters including floods, earthquake, droughts, etc. It has been observed that over the years, the scope of activities of ERRA are reducing due to completion of various projects/activities in the earthquake affected areas. The representative of the Prime Minister's Office has apprised the participants of the meeting that in principle decision regarding merger of ERRA with NDMA has already been taken and its legal formalities and manpower requirements are being finalised.
The representative of ERRA has shown his concern on merger of ERRA with NDMA on the analogy that rehabilitation and reconstruction are long drawn process and merger of ERRA with NDMA may not be feasible. Since the decision of merger has already been taken therefore no further action on the part of subcommittee is required to be taken.
The participants of the meeting were apprised about the functional similarity of both the Foundations ie both are engaged in preparation and promotions of housing plans across the country. The focus of both the foundations is to provide housing facilities for Federal Government Employees as well as shelter less and other low income/specified groups. The proposal was envisaged to remove overlapping and duplication of functions through merger of both the Organisations. The representatives of both the organisations were however of the view that operational requirement of both the Foundations are different from each other. The Authority provides Housing Units to general public (partially for government employees) whereas, the Foundation provides plots to the Federal Government Employees. They were of the view that merger of the Organisations will adversely affect the operation of both the Foundations. After detailed deliberations, the participants were of the view that both the Foundations may continue to function independently. The sub committee decided that Pakistan Housing Authority Foundation and Federal Government Employees Housing Foundation may continue independently.