Engineering Vision

EDB Presentations	Engineering Vision
Engineering Vision GROWTH STRATEGY FOR THE ENGINEERING INDUSTRY TO ACHIEVE RAPID INDUSTRIALIZATION AND ECONOMIC GROWTH
The Ministry of Industries, Production & Special Initiatives made a Presentation to the President / Chief Executive of Pakistan on 22^nd August, 2002, on the “Growth Strategy for the Engineering Industry to Achieve Rapid Industrialization and Economic Growth of Pakistan”. The President / Chief Executive was pleased to approve and direct immediate action by the concerned Federal/ Provincial organizations for implementation of the following recommendations made during the Presentation.

Policy Thrust
Build Pakistan’s image as a professional producer of quality products as per international standards; All policies to be driven by national interest supporting local industry but without infringing on international commitments; Fragmented decision making must be avoided by following an integrated approach with various policies complimenting and not contradicting each other. Ministry of Industries, Production & Special Initiatives / EDB to be invariably consulted on all issues and policy formulations affecting the Industrial Sector. Full participation of private sector stakeholders in policy formulation, implementation and monitoring to be ensured.
ii. Human Resources Development
On the pattern of increased allocation for higher education, the technical Manpower Training to be given greater priority through larger allocation for technical education and skill development for the next five years.
iii. Maximum Participation of Local Engineering Industry
Ensure local components of PME to be at least 30% specially for Energy Sector Projects. Procurement of engineering goods, Design & Engineering Services should be out sourced through local engineering companies. In case local expertise is not available, Pakistani companies should seek collaboration with foreign companies with the condition that such collaboration should ultimately lead to transfer of technology. Earmark 2000 MW of power generation with progressive indigenization for local engineering Industry in the power Policy. Make existing system more effective to ensure that the public sector/ government procurement is undertaken from the local engineering Industry
iv. Technological Upgradation
Provide sufficient funds for the Technology Development fund (MOST) for allocation to the Engineering Sector on matching grant basis.
v. Globalization of Industry
Ministry of Industries , Production & Special Initiatives and Board of Investment (BOI) should formulate aggressive and attractive policies to attract relocation of industries from industrialized countries. All efforts to be made shall be for making Pakistan member of global supply chain, particularly auto sector CKD Kits and Spare Parts
vi. Encourage Rapid Growth Through Market Enhancement
Government has recently announced Consumer Financing Scheme for market enhancement. Enactment of effective repossession laws to further encourage leasing be expedited. Expedite establishment of EXIM bank As a matter of Government Policy stakeholders renegotiate the existing agreements with foreign partners to permit exports of tractors, cars, transformers, electric motors, pumps etc. from Pakistan; and Selective intervention to encourage and expand STAR performers.
vii. Institutional & Regulatory Framework
Rationalization of tax and tariff regimes carried out in the last two budgets by Ministry of Industries , Production & Special Initiatives, CBR and EDB are to continue providing protection and level playing field including withdrawal of exemptions detrimental to the local industry; During the President / Chief Executive’s visit to Japan, a major achievement was the financial & technical support provided by Japan for upgrading three (PITAC Lahore, PTC & AT&TC Karachi) common facilities and technology support centers. Similar additional centers should be planned and established throughout the country on priority. Strengthen Pakistan Standard & Quality Control Authority; and as directed, M/o Industries , Production & Special Initiatives/ Engineering Development Board are to be assigned the responsibilities to ensure implementation of this growth strategy. The EDB should be accordingly strengthened and provided necessary legal cover. The additional financial requirement to be determined by the Minister for Industries, Production & Special Initiatives in consultation with Minister for Finance. Cabinet Division is requested to take further necessary action accordingly.