Recently, the Prime Minister, in a cabinet meeting, has disbanded the Engineering Development Board after the complaints made by the new entrants in the automotive sector.
According to officials, the EDB is creating hurdles in the way of the new entrants and is delaying the CPEC Power Project.
We contacted one of the top EDB officials and inquired about the whole scenario, and he said
“The issue is challenged in court by industry and employees. There is some import mafia in the energy sector, which is against us.”
“Paapam, backed by PAMA went to the court.” He further added.
The closure of EDB will have its adverse effects on the auto industry, as it played an important role in uplifting the auto parts industry. Pakistan’s export was at $20.55 billion, while the imports have gone up by $45.56 billion in the first 10 months of (July-April) FY 2018. These figures indicate the big trade deficit and the reason for high imports was the import of auto parts.
Read Also: EDB To Make Automobile Quality Testing Centers In Various Cities of Pakistan
While speaking to the media, Senior Vice Chairman Paapam, Mohammad Ashraf Sheikh said,
“The Engineering Development Board has played a vital role in encouraging the use of local auto parts in the industry. It helped grow the vendor industry, and now over 300 parts manufacturers are supporting the industry in achieving greater localization.”
He further added,
“It is unfortunate that the government has failed to safeguard the AIDP (Auto Industry Development Plan) 2016-21 and it is no more being followed. Its custodian has been dislodged, and the industry has lost a one-window facility. Our members’ grievances are not being alleviated. It will devastate ongoing growth of localisation in the country.”
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