The auto sector growth, which starts progressing after new auto policy, is likely to be moribund again in case of disbanding the Engineering Development Board (EDB). This was stated by Mashood Ali Khan chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) flanked by former chairmen at a press conference held at local hotel here.
He expressed concern over the discussion held in a recent meeting of the Cabinet Committee on Energy (CCoE) during which EDB was criticized for delaying approvals of CPEC power projects and supposedly involved in rampant corruption. This led to a directive from the Prime Minister to dissolve the organization since it was no longer able to serve any useful purpose, he added. Meanwhile, Aamir Allawala said that the requirement of EDB's verification for availing duty exemption was already removed for IPP projects above 25MW through an amendment made in the Finance Bill 2016-17.
He therefore said that the CCoE may have been wrongly briefed about 'so called' delay in processing of power project proposals by EDB. In fact, EDB's role for processing cases of power projects over 25MW has been handed over to the Ministry of Water & Power. In the light of this scenario, the CCoE needs to review its uncalled for criticism and unjust position taken on EDB's performance.
He said that the auto industry had been engaging with EDB ever since its inception in 1995. During this period, there has never been a single scandal of corruption or malpractice at the EDB. On the contrary, the organization has played a major role in nurturing the domestic auto industry and promoting the growth in localization of auto parts in Pakistan.
In 1995, hardly 10 to 15 per cent of parts for passenger cars were produced locally and now this figure has touched 70 per cent. Similar trends were witnessed in case of motorcycles, trucks, buses & tractors. The industry was able to achieve these milestones only due to diligent implementation of deletion programs and tariff based systems by the EDB.
Moreover, he said that since 2010, the government had failed to give due importance to EDB or the engineering sector as the board operated without a CEO for almost three years from 2012-15. The appointment of subsequent CEO for the period 2015-17 was highly controversial and devoid of merit. Finally, once again, EDB is without a permanent CEO since March 2017.
Aaamir further stated that PAAPAM members could vouch that they had not experienced any instances of corruption at any level in EDB, although all of them have an ongoing working relationship with the organization ever since its inception.
Moreover, he said that EDB did a good job and a custodian of local industry, despite all shortcomings and the decision to dissolve EDB would create chaos like situation where investors would be moving from pillar to post to get approvals for the project, which would definitely stagnant auto sector growth.
Keeping all in view, chairman PAAPAM Mashood Ali Khan along with other former chairmen requested the Prime Minister Mian Muhammad Nawaz Sharif to revisit his instruction regarding the disbandment of EDB and allow an opportunity of explaining and clarifying the grave issues involved in order to make Prime Minister fully apprised of the facts and figures. Moreover Mashood said that they were optimistic that PM would not take any decision which could be detrimental to the auto sector.