Finance Minister, Senator Ishaq Dar has reportedly grilled Chief Executive Officer (CEO) Engineering Development Board (EDB) for violating recently approved new entrants policy, well informed sources told Business Recorder. The CEO who is under investigation for the last six months for his two degrees from non HEC recognised institutions, reportedly embarrassed Secretary Industries and Production, Khizer Hayat Gondal, during a recent meeting of the ECC presided over by Ishaq Dar.
Ministry of Industries and Production revealed that the ECC of the cabinet had approved the new entrant policy for motorcycle manufacturing industry with new technology in its meeting held on August 22, 2013.
The ECC had decided: (i) Ministry of Industries will process the cases of new entrants under this policy and make recommendations for the approval of the ECC; and (ii) new technology will be defined by the EDB and would be approved by the ECC on the recommendations of the committee comprising representatives from BoI, Ministry of Commerce and chaired by Secretary Industries.
Ministry of Industries & Production further noted that the new technology was defined by the EDB as follows: "new technology can be a product having a new application for an existing product in terms of technical features and specifications along with improved shape which can improve existing products to enhance product, performance, safety, shape and minimising emissions. The exact application of this definition shall be on case to case basis and in comparison with existing technology related to the product(s)".
Ministry of Industries and Production apprised the meeting that a motorcycle manufacturing company had approached the Ministry for application of the new entrant policy with new technology and had requested for incentives provided therein. The committee, constituted by the ECC, reviewed the technological differences between new model of the company and those already being assembled in the country and came up with the following consensus:
"Keeping in view the technological differences presented by the company, views of member and technical input by EDB the committee agreed to recommend grant of new entrant status to new model of the company in order to promote innovation, wider choice to the consumers, and create employment opportunities in the country".
The ECC observed the new entrant policy for the motorcycle company with new technology has already been approved by the ECC; therefore, the cases of new entrants should be dealt with in light of the said policy.
"Chairman, ECC, expressed his displeasure over the submission of company-specific policy proposal to the ECC. He stated that the Ministry of Industries and Production should prepare policies which should be applicable to all concerned and should not be focused on benefiting a single beneficiary," the sources continued.
Dar constituted a committee comprising Secretary, Industries and Production Division (Convener), Chairman, Federal Board of Revenue and representative from Finance Division to review the new entrant policy for motorcycle industry holistically and submit its report to the ECC of the Cabinet.