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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.



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.


 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.


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.


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.