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EDB NEWS ARCHIVE

Progress on Implementation of Automotive Development Policy

EDB is executing the implementation of Automotive Development Policy 2016-21. Under the ADP 2016-21, 21 new entrants have been granted Greenfield  status and two closed units have been revived under the policy with commitment of more than 1 billion USD. Six companies have already started local manufacturing of Cars/HCVs/LCVs/SUVs etc. Furthermore, as per ADP 2016-21, Pakistan became member of United Nations Economic Commission for Europe (UNECE) WP.29 Regulations for compliances to safety of human life, environmental protection and sustainable growth of motorization in the country as well as harmonization of automobile regulations in line with global requirements. In this regard EDB is actively pursuing adoption for WP.29 regulations and several meetings are being held on regular basis.

Deliberations on Automotive Industry Development and Export Plan (2021-26)

As Automotive Development Policy is reaching its end, new Automotive Industry Development and Export Plan is being prepared by EDB. The new policy will envisage a mechanism to reduce smuggling, misdeclaration, under invoicing of various parts and components, which are hurting local part manufacturers in particular and vehicle manufacturing in general. As competition has been created in the local market, the focus of upcoming policy will be on Customer Satisfaction addition to sustainability, quality improvement, fair competition, reduction in delivery lead times and export enhancement.

In this regard series of meetings were held from January 25-27, 2021 with tractor industry, Pakistan Automotive and Manufacturers Association, Pakistan Association of Automotive Parts and Accessories Manufacturers, Motorcycles Industry, Pakistan Automobile and Spare Parts Importers and Dealers Association and other relevant stakeholders.

34th Meeting of the Auto Industry Development Committee

34th Meeting of the Auto Industry Development Committee was held on Thursday, 14th January 2021 under the chairmanship of Chief Executive Officer, Engineering Development Board (EDB) at Committee Room of Board Of Investment Islamabad.

The MOU Singed between EDB and PBC

The Pakistan Business Council (PBC) and the Engineering Development Board (EDB) signed a Memorandum of Understanding (MOU), for the two organizations to collaborate and utilize all resources and expertise available to develop Pakistan’s Engineering Goods and Services Sector on modern lines. PBC’s main thrust is “Make-in-Pakistan” the objectives of which is to create jobs, promote exports and encourages import substitution on a competitive and sustainable manner.

Electric Vehicle Policy of Pakistan was approved by the Federal Cabinet on 22-12-2020. 

In line with Government of Pakistan vision of “Clean Green Pakistan”, EDB began work on formulation of electric vehicle (EV) policy.  EDB concentrated on “Make in Pakistan” strategy focusing on the local manufacturing and gradual shift from fossil fuels to electric vehicles. In this regard a high level inter-ministerial committee finalized the recommendations of the EV Policy for 2-3 wheelers and Heavy Commercial Vehicles, which have been approved by the Cabinet and implemented.

Furthermore, policy/recommendations for four wheel Electric Vehicles were approved from the ECC on 16-12-2020 and endorsed by the Federal Cabinet on 22-12-2020.

Mobile Device Manufacturing Policy approved by the Cabinet

The mobile device manufacturing policy approved by the cabinet in June 2020 attracted attention of both, local and foreign investors. Responding to policy prepared by EDB, companies i.e. Q-Mobile, Techno, G-Five, etc. which are already manufacturing mobile devices in Pakistan are enhancing their capacities and new companies i.e. Vivo, Oppo, TCL(Alcatel), etc. are ready to launch/start manufacturing of the Mobile Device locally in Pakistan.

45th Meeting of Board of Management

The 45th Board of Management meeting of Engineering Development Board was held on 27th February 2021 in National Fertilizer Corporation Lahore under the chairmanship of Mr. Almas Hyder, Chairman EDB. Main focus of the session was Electric Vehicle Policy, Mobile Policy and AIDEP 2021-26. Domestic Appliances Plan/ Electronic Policy were also discussed. The session also enlightened the review of incentive schemes including DTRE for export of engineering goods from Pakistan. Steel Policy was also deliberated by Board members. It was decided that, EDB shall perform the function of the think tank as required by the MoIP.

EDB and PBC Conducted Sectoral Study of Fan Industry & Surgical Industry

EDB and PBC signed a MOU on 12th Jan, 2021 to collaborate for development of engineering goods and services sectors. The objective is to identify technology acquisition requirements for increasing productivity of the sectors, and determining certification and standards requirements of the industry, along with working for capacity building and skill development of the SME sectors.

Sectoral Study of Fan Industry at Gujrat, Gujranwala

The prime objective of the delegation’s visit was to explore opportunities to enhance exports and know about challenges being faced by fan sector. Delegates held productive meetings with different companies including M/s Royal Fans, Pak Fans, GFC Fans, Starco fans, Super Asisa Fans, Anwer Asia, Champion Fans and Indus Fans etc. which are the prominent manufacturers/exporter of electric fans in Gujrat and Gujranwala. Overall the electric fan industry has grown in size and the number of units is over 300 now. With global warming on the rise, the demand for electric fan is bound to rise internationally. Moreover, with the availability of electricity to more and more people, especially in developing world, the demand will grow further. During the visit, the industry was sensitized about upcoming threats and opportunities and cautioned to prepare.

Sectoral Study of Surgical Industry at Sialkot

Members from PBC and EDB has successfully visited Sialkot surgical sector from 28th February to 6th March 2021. A delegation comprised of two members from EDB and one from PBC. The objective was to identify technology acquisition requirements for increasing productivity of the sectors, and determining certification and standards requirements of the industry, along with working for capacity building and skill development of the sectors. Delegates held productive meetings with members of different institutes including SIMAP, MIDC, Sialkot Dry port trust, SBP BSC Sialkot and different companies including E.F. Brewers, Medical Devices, ELMED, SITECH etc. The prime objective of the delegation’s visit was to explore opportunities to enhance exports and know about challenges being faced by surgical sector.

 

EDB HELD MEETING ON EXPORT ENHANCEMENT AND IMPORT SUBSTITUTION ON 22nd MARCH 2021.

On the advice of Chairman  EDB a series  of meetings with the stakeholders of the following Engineering Sectors were held on export enhancement  and import substitution.

  1. Electrical and Power Equipment.
  2. 2-3 Wheelers Automotive and Auto Parts.
  3. Mobile Phones
  4. Home Appliances

The meetings were held at TDAP office Lahore and NFC Head Office, Lahore and were chaired by Mr. Abdur Razak Dawood, Advisor to the Prime Minister on Commerce and Investment. Several issues were highlighted in order to facilitate the export of the products falling under the aforesaid sectors. The stake holders gave several proposals related to duty drawback rates, review DLTL, export subsidy, Tariff rationalization, testing and certification arranging  Trade Fairs/ Exhibitions, support in facilitation of incentive scheme etc. The stakeholders also highlighted the issues in import substitution which include price escalation, localization of input parts, issues relating to SRO 827 etc.

The advisor to the Prime Minister assured in resolving the issues and asked the industry to provide a comprehensive business plan on enhancing the export with target countries along with  sunset class for facilitation.

 

Inauguration of AIRLINK and INOVI

AIRLINK inauguration on 12th March 2021

Mr Hammad Azhar, Minister for Industries and Production inaugurated manufacturing plant of M/s Airlink. The Minister was accompanied by chairman BoM, CEO and GM Policy EDB. The company has started local assembling of Tecno, Itel and TCL brand mobile phones.

Mr. Hammad Azhar remarked that local manufacturing of mobile handsets in Pakistan will not only a create a high-tech eco-system within the country, but is also expected to overtake the auto sector both in terms of revenue and employment generation.

INOVI inauguration on 25th March 2021

Mr Almas Hyder Chairman BoM, EDB accompanied by GM Policy, Mr Asim Ayaz visited INOVI Telecom Karachi to witness manufacturing facilities installed by the company after announcement of Mobile Device Manufacturing Policy. The company has started assembling Infinix and itel brand mobile handsets.

Export Of Engineering Goods (14th April 2021)

Mr. Hammad Azhar, former Minister for I&P chaired a meeting on EXPORT OF ENGINEERING GOODS SCHEMES, 2021. The meeting was attended by Secretary MoIP, CEO-EDB, and senior officials from Ministry of Industries & Productions and Engineering Development Board. CEO EDB gave a briefing on salient features of the scheme which has been devised to facilitate the engineering industry exports and bring it at par with traditional sectors like cotton, leather etc. The Federal Minister appreciated the effort of EDB and advised to make the scheme more effectual and productive, while ensuring minimum regulatory and compliance overheads, in line with the objectives of the government.

Meeting On Critical Issues And Way Forwarded For Steel Sector

EDB has, in consultation with stakeholders from private and public sectors, prepared a National Steel Policy (NSP). The aim of the Policy is to build the foundation for a globally competitive steel industry, encourage import substitution, attract local and foreign direct investments (FDIs), encourage use of efficient technologies and enhance exports of this sector. The policy aims to do this through appropriate incentives regime that will develop and maintain a level playing field for all stakeholders.

Pakistan-Steel

 Meeting With PAMAA On AIDEP 2016-21

The Automotive Industry Development Policy 2016-21 is reaching its end and a follow-on policy, the Auto Industry Development and Export Plan (AIDEP 2021-26) is being prepared by EDB. In this regard, as part of the consultative process a meeting was held with Pakistan Automotive and Manufacturers Association to deliberate on the contours of the new policy. The meeting was chaired by Mr. Makhdoom Khusro Bukhtiar Federal Minister for Industries & Production. Secretary Ministry of Industries & Production, Chairman EDB, CEO EDB and senior officials of the Ministry and EDB were in attendance.

The Federal Minister informed that the government would like to incentivize entry level cars for first time buyers; encourage export of motorcycles, tractors and auto-parts; and bring in quality and safety features through implementation of phase-wise adoption of WP 29 regulations. The Federal Minister appreciated the efforts of EDB, and cooperation extended by the industry, in development of the new policy

 

2nd Meeting of the Joint Working Group (JWG) on Trade Investment and Auto Sector between Pakistan and Sri Lanka

2nd Meeting of the Joint Working Group (JWG) on Trade Investment and Auto Sector between Pakistan and Sri Lanka was held in the Ministry of Commerce. The meeting was attended by GM- SDG, EDB and senior officials from the Ministry of Foreign Affairs, Ministry of Commerce, Economic Affairs Division, Federal Board of Revenue and Board of Investment.

EDB examined the request of Sri Lanka for restoration of auto tariff lines to concession list and further liberalization of products under FTA signed with Sri Lanka. EDB after consultation with local industry clarified these items cannot be restored / liberalized under FTA as they manufactured locally.

3rd Session Of Pakistan-Belarus Joint Working Group (JWG) On Industries Corporation

 

The 3rd Session of the Joint Working Group (JWG) of Pakistan-Belarus on Industrial Cooperation was held virtually on 8th June, 2021 in Engineering Development Board (EDB), under the chairmanship of Additional Secretary-II, Ministry of Industries and Production (MoIP). CEO (EDB), senior government officers from MoIP, EDB, M/o Commerce, FBR, DRAP, M/o Foreign Affairs, M/o Energy, and private sector including FPCCI, PAMA and PAAPAM attended.

From Belarus sides, besides the Deputy Minister of Industries (Head of delegation), his team, the meeting was also attended by the Ambassador of Belarus in Pakistan via zoom.

Both sides exchanged their potential and experience in the manufacturing of different heavy and medium scale industrial and engineering products. Pakistan side highlighted potential areas including Home Appliances, Electrical Machinery & Equipment, Automobiles, Cutlery & Utensils, Surgical Instruments, Electric Vehicles, and Mobile Devices manufacturing for joint collaboration, trade enhancement and investment.

Belarusian side highlighted different areas for cooperation between two countries Belarus and Pakistan which included supply of tractors, trucks/dump trucks. engines, diesel gensets & compressor stations, machine-tools, agricultural machinery & supplements etc.

The delegates from Belarus appreciated EDB’s efforts for sharing ongoing opportunities and working together mutual benefit of both countries.

FIRST MEETING OF MINISTRIES OF INDUSTRY OF SCO MEMBERS STATES

CEO-EDB led the MoIPs team to participate in online meeting of experts which was organized by Tajikistan in coordination with SCO Secretariat. The Shanghai Cooperation Organization (SCO) is a permanent intergovernmental international organization, comprising eight member states namely, the Islamic Republic of Pakistan, Republic of India, Republic of Kazakhstan, People’s Republic of China, Kyrgyz Republic, Russian Federation, Republic of Tajikistan, and the Republic of Uzbekistan. Its main goals are to strengthen mutual trust and neighborliness’ among the member states.

The experts meeting deliberated upon promotion of economic growth, social and cultural development with a view to steadily enhancing the living standard of the member states peoples, broadening trade-economic cooperation, developing production capacities, implementing joint high-tech projects and introducing innovative technologies among all the member states. Representatives of member countries were unanimous in suggesting development of mechanisms for increased interaction within SCO and proposed a draft protocol for circulation to all the member states and early finalization.

COMPETITIVE IMPROVEMENT EXERCISE OF ENGINEERING SECTOR 2021-22

In line with its previous practice, EDB initiated the annual competitiveness and efficiency exercise for the budget year 2021-2022 with the basic objective to solicit proposals from engineering industry specifically focusing on Make in Pakistan, increasing competitiveness of local manufacturing and enhancement in exports of engineering goods. A number of interactive sessions were held with individual companies, associations and industrial clusters of engineering sectors to firm up proposals for making the engineering sector more competitive.

Engineering sector holds great importance in the world economy, and potential for Pakistan, as its share in global trade is more than fifty percent.

EDB’s summary of recommendations to the government for making the engineering industry competitive included increase in regulatory duties on finished products, reduction of duties and taxes on raw materials and intermediate goods, removal of anomalies in the cascading duty structure, and simplification of rules and procedures.

47th meeting of EDB’s Board of Management

47TH Meeting of EDB’s Board of Management (BoM) held in Lahore on 18th June, 2021 at Millat Tractors and was attended by majority of the Board Members.

CEO-EDB briefed the Board on the performance of the organization and major assignments completed. The house was briefed on the Electric Vehicle Policy for 2-3 Wheeler & HCVs, Update on Auto Policy, Mobile Policy, Update on Budget 2021-22, Proposal on Trade Fair and Delegations, and AIDEP 2021-26 which includes exports of parts and components, tractors and motorcycles to different countries.

Further administrative matters like promotions in EDB, as well as Issues related to exports of Engineering Goods was also discussed. Various measures to look after the local industry were discussed at length.

While appreciating the role being played by the organization for facilitating the industry, the BoM further advised on increasing the effectiveness of the organization to make it more vibrant and dynamic.

Meeting on Export Enhancement of Engineering Goods & Services

Globally the engineering sector accounts for approx 56% of international trade in goods and services. Unfortunately the engineering sector in Pakistan has not received the same attention and only accounts for a fraction of the country’s exports. In order for Pakistan to reduce or eliminate its negative balance of trade, it is imperative to focus on exports of engineering goods, which have a potential for exponential increase as opposed to traditional, agro-based sectors.

For the financial year 2021-22 a target of approx USD 1.8 billion has been given by EDB for exports of engineering goods and services. This is an increase of approx. USD 300 million from the previous financial year.

With a view to enhance share of engineering goods and services exports and reduce reliance on traditional sectors in the exports basket, Engineering Development Board has started a series of consultative meetings with stakeholders at various engineering clusters around the country. In this regard a consultative session was organized at Gujranwala Chamber of Commerce & Industry on  10th August,2021 in which manufactures from cutlery & utensils, pumps and motors, and sanitary and kitchen wares participated. The meeting was chaired by CEO-EDB and President of the Gujranwala Chamber of Commerce & Industry; and participated by senior officials of EDB and office bearers of the Gujranwala Chamber.

Participants were informed by EDB about various government schemes for promotion and facilitation of exports and advice solicited on how industry can be further incentivized. The participants highlighted several issues being faced by them in exports and requested for their resolution. They also suggested various measures for further encouraging the engineering goods exporters in this clusters.

Export Potential to China –CPFTA-II

In a meeting with senior officials of Engineering Development Board, Chairman EDB and CEO-EDB reviewed the status of exports of engineering goods to China and emphasized to explore the possibility of export to China especially regarding concessions given recently by China on engineering goods imports from Pakistan.

In 2nd Phase of Pak-China FTA, China has provided further concessions to Pakistan on 313 items which constitute 3.8% of China’s total imports worth US$ 67 billion, and which also include US$ 9.0 billion worth of engineering goods. These items have been brought to 0%, and were previously being imported from Pakistan at duties ranging from 5-35%.

The items which have been given preferential access by China represent a huge opportunity for Pakistani manufacturers and exports of these items include; air conditioners, refrigerators, heat exchanging units, filter parts, washing machines, pumps, fans, batteries, cables & conductors, tractors, coaches, dumpers, fire fighting vehicles, automotive parts, bicycles, forged/ stamped articles, sanitary wares, parts of copper, tools, knives, blades, manicure-pedicure sets & instruments, hooks, eyes & eyelets of base metal, spring mattresses, bedding/furnishings, electric lamps and fittings, etc.

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48th BoM

48TH Meeting of EDB’s Board of Management

48th Meeting of EDB’s Board of Management (BoM) was held in Lahore on 23rd August, 2021 and attended by majority of the Board Members.

CEO-EDB briefed the board on the accomplishments of the organizations along with the progress on assignments discussed in the previous meetings. The house was briefed on the progress in the implementation of the Electric Vehicle Policy for 2-3 Wheeler & HCVs, progress on Auto Policy and Mobile Device Manufacturing Policy, proposals for new Auto Policy AIDEP 2021-26 which includes emphasis on exports of parts/ components, tractors and motorcycles. BoM issued various instructions to further streamline the activities on these subjects.

Matters related to development and exports of Engineering sector in general were deliberated and various measures to support the local industry were discussed at length. While appreciating the role being played by the organization for facilitating the industry, the BoM further advised on increasing the effectiveness of the organization to make it more vibrant and dynamic.

First Online Meeting of Ministers of Industry of the Member States of the Shanghai Cooperation Organization

The first online meeting of Ministers of Industry of the Member States of the Shanghai Cooperation Organization (SCO) was held on July 2021. The meeting was held under the chairmanship of Minister of Industry and New Technologies of the Republic of Tajikistan. The Parties exchanged views on the current state, prospects and cooperation initiatives of the SCO member states in the industry sector and declared their readiness to enhance economic development and increase the population’s welfare in the SCO member states.

The following understandings were reached during the meeting:

  • To establish a new mechanism of interaction within the SCO – the Meeting of Ministers of Industry of the SCO member states
  • To coordinate the activities in the industry sector, broaden and deepen industrial cooperation between the SCO member states
  • To hold congress exhibition events in particular within the framework of the Meeting of Ministers of Industry of the SCO member states
  • To create the Industrial Investment Projects Data Bank of the SCO member states

The countries affirmed the need for the SCO Secretariat to continue the work on building up coordinated and effective industrial cooperation between the SCO member states with cooperation of representatives of state structures, business circles, scientific-research and other organizations for searching new ways for cooperation in the industry sector.

Shanghai

Meetings on Export Enhancement of Engineering Goods & Services

With a view to enhance share of engineering goods and services exports and reduce reliance on traditional sectors in the exports basket, Engineering Development Board has started a series of consultative meetings with stakeholders at various engineering clusters around the country. In this regard a consultative session was organized at National Fertilizer Corporation  (NFC) Lahore on 16th and 17th August, 2021 in which  manufactures from electrical & power, automotive / auto parts & components, home appliances, cutlery & utensils, pumps and motors, and sanitary and kitchen wares participated. The meeting was chaired by CEO-EDB and participated by senior officials of EDB.

Participants were informed that while globally the engineering sector accounts for approx 56% of international trade in goods and services, unfortunately the engineering sector in Pakistan has not received the same attention and only accounts for a fraction of the country’s exports. In order for Pakistan to reduce or eliminate its negative balance of trade, it is imperative to focus on exports of engineering goods, which have a potential for exponential increase as opposed to traditional, agro-based sectors. They were further informed that for the financial year 2021-22 a target of approx USD 1.8 billion has been given by EDB for exports of engineering goods and services. This is an increase of approx. USD 300 million from the previous financial year.

Participants were informed by EDB about various government schemes for promotion and facilitation of exports and advice solicited on how industry can be further incentivized. The participants highlighted several issues being faced by them in exports and requested for their resolution. They also suggested various measures for further encouraging the engineering goods exporters in this clusters.

Proton  (Al-Haj Automotive Pvt Ltd.) has Started Local Production In Pakistan

The team from Engineering Development Board (EDB) visited Al-Haj Automotive (Pvt.) Ltd. assembly plant for the verification of equipment and preparation of production.

Engineering Development Board (EDB) – Ministry of Industries and Production after verification, has issued certification in-house assembling/manufacturing facilities to Al-Haj Automotive (Pvt.) Ltd. making it qualified to assembled Proton vehicles in Pakistan.

The team was given a detailed tour of the facilities. They appreciated the efforts made by Al-Haj Automotive (Pvt.) Ltd. for adopting the industry-best technology in our state-of-the-art assembly plant.

FEDERAL MINISTER FOR INDUSTRIES & PRODUCTION VISITS TRANSSION TECNO ELECTRONICS (PVT) LTD.

Federal Minister for Industries and Production, Makhdoom Khusro Bukhtiar, accompanied by GM Policy EDB visited Transsion Tecno Electronics (Pvt) Ltd Karachi on 10th September 2021 to witness manufacturing facilities. Transsion Tecno is currently leading smartphone manufacture in Pakistan producing Tecno, Infinix and Itel brands. The Federal Minister remarked that a major portion of foreign direct investment had come into fast moving consumer goods and telecom sectors. He further added that mobile phone industry has the potential to become a leading contribution towards Pakistan’s economic growth since it is labour intensive in nature & can create job opportunities for Pakistani workers, technicians and engineers. Furthermore because of availability of a huge domestic market, this sector can become a major contributor to the export base of the country.

FEDERAL MINISTER FOR INDUSTRIES & PRODUCTION VISITS PAK SUZUKI MOTORS COMPANY LTD.

Federal Minister for Industries and Production, Makhdoom Khusro Bukhtiar, accompanied by senior officials from the Ministry of Industries & Production and Engineering Development Board paid a visit to Pak Suzuki Motors Co. Ltd Karachi on 9th September 2021. He congratulated the Company for achieving highest production of New ALTO 660cc in 2021. He remarked that the entire auto sector has received a boost and an increase in demand due to the policy incentives approved by the Government on the recommendations of the Ministry of Industries & Production. The under development Auto Industry Development and Export Policy (AIDEP), which has partially been implemented through the Finance Bill 2021, is expected to give a major impetus to the industry and enhance its contribution to the economy.

Engineering Development Board Join Hands with Pakistan Single Window (PSW)

PSW (Pakistan Single Window) is a newly launched trade electronic platform to facilitate compliance in international trade. The portal shall provide single entry point where to lodge standardized information and documents to fulfill all import, export, and transit-related regulatory requirements. EDB is coordinating with PSW to integrate various SRO’s with the portal and to define a roadmap for designing capacity building training programs for various engineering clusters for acquaintance of the stakeholders, who are facing hurdles like; like selection of bank, creation of import/export Goods Declaration (GD) etc.

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MEETING WITH PBC ON SECTORAL REPORT RELATED TO DOMESTIC FANS INDUSTRY OF PAKISTAN

EDB and PBC signed an MOU on 12th Jan 2021 to collaborate for the development of engineering goods and services sectors. The prime objective is to identify technology acquisition requirements for increasing productivity of the sectors, and determining certification and standards requirements of the industry, along with working for capacity building and skill development of the SME sectors. In this regard, a sectoral study was jointly initiated by EDB and PBC on the Domestic Fan Industry of Pakistan and a consultative session was held on 17th September 2021 with the Pakistan Business Council (PBC), under the Chairmanship of CEO-EDB to discuss the sectoral  report related to the Domestic Fan Industry of Pakistan.

EDB has shared its technical suggestions and improvements related to the initial draft as provided by the PBC research team. During the session, EDB highlighted the major points related to information of standards & certifications, human resource and value chain structure. Furthermore, EDB shared details of recommendations and improvements on the initial draft to PBC team to finalize the fan report.

49th Meeting of EDB’s Board of Management

49th (extraordinary) Meeting of EDB’s Board of Management (BoM) was held in EDB Islamabad on 24th September, 2021 and attended by majority of the Board Members. Single agenda item for the meeting was review and approval of Auto Industry Development & Export Policy (AIDEP) (2021-2026) for it’s onwards submission to the Government.

General Manager Policy presented the draft Auto Industry Development and Export Policy to the Board Members, which inter-alia, includes reference to previous policies including deletion programs, Auto Industry Development Policy (AIDP 2007-12), ADP 2016-21, objectives of new policy, incentives for hybrids and Electric Vehicles, 5 year tariff plan, export promotion, other incentives including promotion of specialized vehicles, rationalization of imports of auto parts and components, application process for investment and composition of Auto Industry Development and Export Committee (AIDEC) to monitor progress of Auto Industry Development and Export Policy (AIDEP).           The pillars of the policy include changing the paradigm for Auto Industry from Assemblers to Designers / Manufacturers. Furthermore the new policy is aimed to ensure competition amongst OEMs, removal of distorting taxes, improvement of supply chain, localization and promotion of locally designed car etc.

The Board members were apprai&sed about following salient features of the policy, which include Meri Garri Scheme, New Product Policy for motorcycles & tractors, Export of Vehicles / Parts, Continuity of EV Policy, Promotion of all new green and efficient technologies for e.g. EV, Hybrids, Hydrogen fuel cell, etc., Consumer Protection, Ensuring local value addition in indigenized parts and Bi-annual updation of localized parts list (SRO-693), Adoption of WP 29 safety regulations. BoM was further informed that many of the interventions proposed in the policy have been approved in the Finance Bill 2021. However few interventions and procedural gaps need to be covered in the policy through publishing a comprehensive document for reference of foreign and local companies/investors.

Progressive Localization of Power Sector Equipment Stakeholder’s Consultation

EDB conducted a high level session at NTDC offices, Lahore on 20th October, 2021 on Indignation of Power Equipment. Mr. Almas Hyder, Chairman-BOM (EDB) chaired the session and was attended (online & in person) by more than seventy participants from government departments such as EDB, AEDB, NTDCL, PPIB, CPPA and local manufacturers of power equipment (i.e. Transformers, Switchgears, Cables & Conductors, Insulators, Towers, Heavy engineering goods, Energy Meters, Capacitors and Overhead Transmission Line Fittings & Hardwares).  The session was organized to enlighten about preparation of a strategic plan for progressive indigenization of power sector value chain under National Electricity Policy (NEP) 2021 for the next 10 years under Indicative Generation Capacity Expansion Plan (IGCEP)

Joint Secretary (Policy & Finance), Ministry of Energy presented the scope of plan for comprehensive Policy Frame Work to produce energy equipment within the country, as per Clause “4.5” of the NEP 2021; (reproduced as under)

 

4.5       INDIGENIZATION, RESEARCH & DEVELOPMENT

4.5.1    A multi-pronged approach for indigenization will be adopted, which shall include promoting local content, transfer of technology, and R&D across the value chain of the power sector. This may also include Government to Government and Business to Business agreements, through which the Government or private entities / parties in Pakistan shall promote transfer of technology. Further, steps will be taken to facilitate creation of development funds to support domestic R&D as well as resources needed for augmentation of indigenous capacity.

Central Power Purchasing Agency (CPPA), Ministry of Energy, is assigned the task assist in preparation of progressive content localization for power sector equipment. During the discussion, the local manufacturers highlighted several issues in NTDCL tendering process and requested for resolution. They suggested various measures for encouraging the indigenization of energy and power equipment considering the future demand as per the policy plan. The local manufacturers were advised to submit their proposals to EDB by 3rd November, 2021, keeping in view the following areas/ challenges for formulating a comprehensive documents for CCPA.

  1. Key policy interventions required to support indigenization in power sector
  2. Excessive/ Redundant regulations
  3. Labor / human resource preparedness to cope up with the projected demand

Visit to Sonex – Kitchenware

A delegation comprising Chief Executive Officer, General Manager (BDG) along with team visited Sonex – Kitchenware, Gujranwala on 5th October, 2021 to discuss the current issues being faced by the industry with reference to exports; kitchenware sector being an important export sector. M/s Sonex Die Cast is the manufacturer of premium non-stick and eco-friendly coating cookware with an extensive sales network within the country since 1960. The company has established a name for itself in the international arena, and is currently exporting to major international markets including U.S.A, Europe and the Middle East.

Director Sonex Die Cast informed about the issues being faced by the company as well as others in the sector like high duties on raw materials and cumbersome documentation required for availing incentives under various export incentive schemes of the Government. CEO EDB assured to take up the matters at appropriate forums within the Government so that this sector could perform to its true potential.

sonex1

Visit to Rafique Engineering – Royal Fan

EDB’s delegation comprising on Chief Executive Officer, General Manager (BDG) along with team visited Rafique Engineering (Gujrat) on 5th October, 2021 for a meeting with MD Royal Fans. The newly elected Chairman, Pakistan Electric Fan Manufacturers Association (PEFMA) was also present. The EDB delegation toured their production facilities and discusses issues being faced by the companies in this sector. During the discussion, the need to focus on simplifying various incentives schemes for exports like Duty Drawback and DLTL were highlighted. The report on Fan Sector prepared by Pakistan Business Council, in collaboration with EDB, also came up under discussion and the Chairman PEFMA assured timely feedback on the same for its early finalization and launching.

Investment Opportunities in Engineering Sector of Pakistan

Chairman Board of Investment (BOI), Muhammad Azfar Ahsan, visited Engineering Development Board and met with the Chairman Engineering Development Board (EDB) Mr. Almas Hyder and CEO EDB on 16th November, 2021.

He was given a comprehensive briefing on the investment opportunities in the engineering sector in Pakistan. It was highlighted that out of the total global trade, engineering goods accounts for a significant portion; in addition there is a huge domestic market for such goods. This sector therefore represents a significant opportunity for investment within the country for exports enhancement as well as import substitution.

Mr Azfar Ahsan informed that BOI was working towards of promotion of investment in all sectors of economy and enhancement of the country’s international competitiveness as well as contribution to economic and social development. He outlined his vision of transforming the interactions with investors through automation.

Mr. Almas Hyder stressed that in addition to improving ease of doing business within the country to attract foreign direct investment and facilitate local capacities enhancement, the country needs to work on improving its ranking in the global competitiveness index. This will facilitate Pakistan based companies to compete successfully in the global market. It was agreed that developed land needs to be made available in all major cities of the country in order to take advantage of local skills and competitive advantages, which will enable external investments as well as allow already formed clusters to expand.

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Meeting On Criteria For Computing The Landed Cost Factor In Terms of SRO 827(I)/2001

SRO 827(I)/2001 provides preference to the local manufacturers of engineering goods in comparison to imported similar goods. Clause 4A (1) of SRO entitles public sector enterprises and corporate entities of proper price comparisons of imported goods with locally manufactured products, in case of “Floating of International Tenders” on FOR basis. Whereas, under Clause 4A (2) of the SRO, in case of those international tenders, where the price is quoted on FOB basis the landed cost factor would be determined by a committee with members from Planning Commission (Financial Analyst), representative from Finance Division and nominee of finance section of the public sector enterprise or corporate entity buying the goods.

 

EDB invited a meeting of the above committee on 02.11.2021 to review the criteria for landed cost factor to incorporate the impact of infrastructure cess of 1.25% imposed by Sindh Government. Last meeting of the Committee was held on 22.04.2014. Besides the committee the meeting was also attended by the representatives from the Crescent Steel & Allied Products, Sui Southern Gas Company Ltd. (SSGC) and Sui Northern Gas Pipe Line (SNGPL) and after detailed deliberations, a criterion for computation of Landed Cost Factor was revised as under;

 

Meeting on Criteria for Computing the Landed Cost Factor in Terms of SRO 827(I)/2001

S.

No.

Cost Components for computing landing cost of imported engineering goods in terms of S.R.O 827 (I)/2001 in Pak Rupees  
 
        i. FOB Value
              ii. Sea Freight (Actual quoted by the bidder on the basis of PNSC rates, which shall be announced by the bidder at the time of opening of the bid.
             iii. C&F value (i + ii). (CFR value).
             iv. Insurance @ 1% of C&F Value given at iii above.
              v. CIF (iii+iv).
             vi. Handling Charges @ 1% of CIF Value given at v above.
            vii. Import Value (v + vi) for the purpose of levying Customs Duty.
           viii. Customs Duty at applicable rate, which shall be calculated on the Import value given at vii above.
             ix. Duty Paid Value
              x. Sales Tax at applicable rate, which shall be calculated on the duty paid value given at ix above.
             xi. Duty & Sales Tax paid value (ix + x).
            xii. Withholding Tax at applicable rate, which shall be calculated on duty and sales tax paid value given at xi above.
           xiii. LC Charges @ 0.25% of FOB Value given at i above.
          xiv. Clearing Charges @ 0.25% of C&F Value given at iii above.
           xv. SED at applicable rate, which shall be calculated on the import value given at vii above to be taken as nil as it stands withdrawn.
          xvi. Provincial Infrastructure Cess (at applicable rate) on %age of import value given at vii
         xvii. KPT Wharfage @ Rs.140 per cubic meter or the prevailing rate.
        xviii. Cranage Loading & Other Charges @ 0.25% of C&F Value given at iii above.
          xix. Inland Transportation Charges from Port to Coating Factory (From Port of final destination in case of products other than pipes, where coating is not required).
           xx. Cost of imported engineering goods (xi to xix)
          xxi. LESS: Handling charges taken at S. No. vi. (Notional value taken for calculating assessed value for purpose of calculating custom duty, sales tax and withholding tax by the customs authority).
         xxii. LESS: Sales Tax taken at x above. (Adjustable as output tax)
        xxiii. LESS: With Holding Tax (Adjustable against final assessed tax)
        xxiv. Total deductions (xxi + xxii + xxiii)
         xxv. Net cost of imported engineering goods (xx minus xxiv)

Pakistan Single Window Launching Ceremony

PSW (Pakistan Single Window) launching ceremony was held on 1st November, 2021. Mr. Shaukat Tarin, Advisor to Prime Minister on Finance and Revenue was the chief guest at the event. Senior officials from EDB were also present alongside. PSW is a trade electronic platform to facilitate compliance in international trade. The portal shall provide single entry point where to lodge standardized information and documents to fulfill all import, export, and transit-related regulatory requirements.

Speaking on the occasion Honorable Advisor said that PSW is in line with vision of the government to promote competitiveness, transparency and efficiency. It would not only facilitate international trade but would also help accelerate digital transformation of the public sector agencies connected to international trade. EDB is coordinating with PSW to integrate various SRO’s with the portal and to define a roadmap for designing capacity building training programs for various engineering clusters for acquaintance of the stakeholders, who are facing hurdles like submission Import Form (EIE), Electronic Form-E (EFE), selection of bank and creation of import/export Goods Declaration (GD) etc.

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Determination of Local Manufacturing Status of RTV Coated Disc Insulators Imported by M/S Jaffer Brothers Ltd.

Jaffer Brothers is a Private Limited company which participates in the areas of agriculture, information technology, communication and other sectors in Pakistan. It approached Engineering Development Board for determination of Local Manufacturing Status of RTV Coated Disc Insulators (80KN-100KN & 120KN) on 8th November, 2021. For this purpose subsequent meetings of stakeholders were arranged by EDB, chaired by the CEO-EDB. After confirmations from the existing manufacturers; it was determined that “RTV Coated Disc Insulators’’ is being manufactured locally by M/s EMCO Industries Ltd.

Efforts to Boost Exports of Cutlery Sector

Engineering Development Board Team Visit Manufacturing Facilities of M/s Al Haj Bus Company

Engineering Development Board-Ministry of Industries & Production after verification, has issued certification of in- house assembling/manufacturing facilities to AL-Hajj Bus Company (Pvt.) Ltd. making it qualified to assemble/manufacture Zhongtong Bus in Pakistan

The EDB team was given a detailed tour of the facilities. They appreciated the efforts made by Al-Haj Bus Company (Pvt.) Ltd. for incorporating industry best practices and technologies in their state-of-the-art assembly plant.

Formulation of National Petrochemical Policy 2021 of Pakistan

EDB has started consultations with concerned stake-holders to prepare the above policy, which includes representatives from the mid-stream (producers) and down-stream stake-holders (users) as well as representatives from academia, industry association and service companies. Representatives from down-stream industry who participated in this meeting include Pakistan Plastics manufacturers Association, PAAPAM, PAMA, PVC Pipes / fitting and other plastic goods, etc.

 

The stake-holders supported the initiative and proposed maintaining the duty structure on the locally made materials for down-stream industries. Further meetings will also be held, in particular with downstream industry before finalizing the Policy draft.

Progressive Localization of Power sector equipment

EDB has started working on formulation of five to ten years Power Industry Equipment Development Plan (PIDP) under the clause 4.5.1 of National Electricity Policy (NEP)’2021 and Indicative Generation Capacity Expansion Plan (IGCEP)’ 2021-30; “A multi-pronged approach for indigenization will be adopted, which shall include promoting local content, transfer of technology, and R&D across the value chain of the power sector. This may also include Government to Government and Business to Business agreements, through which the Government or private entities / parties in Pakistan shall promote transfer of technology. Further, steps will be taken to facilitate creation of development funds to support domestic R&D as well as resources needed for augmentation of indigenous capacity.”

 

Under Clause “4.5” of NEP’2021 and Roadmap under NE-Plan, EDB has to prepare comprehensive Policy Frame Work for the production of energy equipment within the country with the following two actions

 

S. No Action Entity Description
1 Assessment of local capability for power industry MoIP/EDB A high-level capability estimation of local industry for production of power industry equipment.
2 Power Industry development Policy & Plan (PIDP) MoIP/EDB A detailed policy & plan for power industry:
•        Incentivizing power industry
•        Design standardization
•        Development, manufacturing & assembly
•        Technology upgradation of local industries capabilities (5-10 years plan)

 

Engineering Development Board (EDB) with assistance of PPMC and relevant stakeholders shall develop Power Industry Development Plan (PIDP) by December 2022, to enable progressively increasing share of indigenous equipment/components in power sector. PIDP shall identify requisite actions and corresponding timelines on account of, inter-alia, incentives, legislation, standardization, certifications, technological upgradations. Provided further, the targets under PIDP shall be deemed part of this National Electricity Plan.

EDB has started consultation with the concerned stake-holders in power sector including the operators, manufacturers and service providers. Operators of power equipment in the areas of Generation, Transmission and Distribution (i.e. NTDCL, GENCOs, DISCOs) are requested to share total requirement of power equipment, (being procured locally or imported) and issues being faced in procurement of locally produced power equipments. Whereas, local manufacturers of power equipments (transformers, cables, switchgears, insulators, energy meters, isolators, hardwares, etc) and EPC/Construction service providers have been requested to provide details of the power equipment being manufactured locally, capability, capacity and service offered.

 

Tentative power equipment is given below:

 

Power Industry Equipment
Generation Transmission Distribution
Boilers

•        For Baggasse based PPs

•        Coal based PPs

•        Combined Cycle PPs

•      Potential transformers

•      Current transformers

•      Power transformers

•      Surge arresters

•      Circuit breakers

•      Switches

•      Protective relays

•      Lightening arresters

•      Switch gear Equipment

•         Transformer

•         Meter

•         Structure

•         Pole

•         Insulator

•         Hardware

•         T&P

•         Safety Items

•         Cable

•         Conductor

Turbines

•        Steam Turbines

•        Gas Turbines

•        Wind turbines

•        Francis, Kaplan, Pelton, etc.

Transformers •        Power transformers
•        Auto Transformers etc.
Solar Technology •        Solar Panels
•        Inverters
•        Other Related equipments.

 

Way forward:

 

  1. Requisite information from all the stake-holders is being follow-up.
  2. Subsequent upon information received from the all stake-holders, EDB in consultation with PPMC will work out Power Sector Resource Requirements (PSRR) and will start drafting the Power Industry Development Plan (PIDP);
  • Central Power Purchasing Agency (CPPA), Ministry of Energy, is also assigned the task to assist in preparation of progressive content localization for power sector equipment.
  1. The PIDP shall cover the development of Generation, Transmission and Distribution power equipment viz-a-viz assurance to local manufacturer to safeguard its investment towards localization. PIDP shall identify future requirements related to capacity, technology and exports on year to year basis.
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Singaporean Company Explores Investment Opportunities in Pakistan

 

Headquartered out of Singapore, Mercantile Pacific is one of the leading players in device lifecycle management and distribution services globally. It is a mobile device and electronics manufacturer with more than two decades of experience of global sales across 75 markets. EDB, BOI, and PTA welcomed the investors and ensured full support for doing business in Pakistan. Officials from EDB briefed them on the incentives for foreign investors in SEZ. Mercantile has been in Pakistan for last two & half years being the sole value added distributor of Apple and the new initiative of Pakistan Government  to invest in Pakistan, will further enable them to expand base thereon in ensuing times.