Sources told Business Recorder on Saturday that EDB development group has floated a plan for the large and medium size engineering companies to increase Pakistan's engineering sector share in the global market by enhancing their exports.
The group's target of $2 billion exports of engineering goods by 2010 is nowhere near the estimated export target of neighbouring India. India has estimated that its exports in engineering sector would grow from $15 billion to $27.4 billion by 2009-10, mainly because of the proactive role of its Engineering Export Promotion Bureau Council (EEPC) for promotion of the sector.
A detailed presentation, showing contrast between Pakistan and Indian engineering sectors and their shares in the global market, was made to Industries and Production Minister Jehangir Khan Tareen by the group constituted by Engineering Development Board for chalking out a workable strategy for enhancing engineering goods exports.
The plan is to work at the grass-roots level of industry by identifying potential exportable commodities and companies and hand-carry them to the global market.
The minister is said to have given go-ahead signal and assured of full support in terms of policy and financial assistance to help the industry overcome its shortcomings. The management, marketing, products, technology and production process of the selected companies would be upgraded.
Selected companies would be registered under three different types of plan. Large-size companies would be registered under 'Level-1' and would be provided support of management and export marketing.
Support to the medium sized organisations, which should have 1000 employees and Rs 250 million capital, would be in management, export marketing and testing equipment.
Small sized organisations, having 400 employees and capital assets of Rs 150 million, would be ensured all support.
The support plan includes organisational overall restructuring assistance, assistance to set up adequate quality control system, education and training support, production planing, export marketing plan, capacity enhancement including equipment support grant and product export support plan.
The proposed support organisations are Engineering Development Board, Technology Upgradation and Skill Development Company (TUSDC), NPO, Smeda from Pakistan and CBI, Holland, AOTS, Japan, IFC and S.E.S from Germany.
The Engineering Development Board (EDB) would provide technical assistance in improving the products and production process to the competitiveness of the company on the global market. It would also train exporters and guide organisations for export enhancement.
The companies having sound financial basis, sufficient budget will translate policies into activities professionally organised and managed, and also the policies and activities for promotion of trade with the European Union and G7 counties.
The Engineering Expo to be held in Lahore is expected to be the biggest one in the engineering history and would help in identifying the potential exportable companies.