ISLAMABAD: An eight-member team of the Federal Investigation Agency’s Anti-Corruption Circle has visited the Engineering Development Board (EDB) to investigate alleged irregularities in appointments, promotions, deputations and other administrative decisions taken during the tenure of former caretaker CEO Engineer Khuda Bakhsh, amid an escalating power struggle within the body responsible for formulating policies for the country’s engineering sector.
The FIA team recently held a meeting with incumbent CEO Hammad Mansoor and sought extensive records relating to Mr Khuda Bakhsh’s service and tenure at the EDB, including his appointment, deputation, absorption, promotions and upgradations, as well as his appointment as chief executive.
The inquiry also covers allegations of illegal appointments, irregular promotions and other administrative and financial irregularities during Mr Khuda Bakhsh’s tenure as acting CEO and chief executive, according to official correspondence reviewed for this report.
The FIA has sought the relevant service and organisational rules, approvals, notifications, proceedings of departmental promotion committees and selection boards, minutes of meetings, correspondence, audit observations, conflict-of-interest declarations and other related documents.
It has also asked the EDB to provide a consolidated record of employees recruited or appointed during the relevant period, including their names, designations, grades, dates and nature of appointment, sanctioned posts against which they were appointed, appointing authorities and present status.
The agency has separately sought complete records relating to appointments made under the project titled “Strengthening of the Engineering Industry/Sector”, including its approved PC-I, sanctioned posts, recruitment process, selection committee proceedings, approvals, appointment orders, remuneration and project expenditure.
The FIA inquiry comes against the backdrop of a prolonged dispute between senior EDB officials and the Ministry of Industries and Production over appointments, deputations and administrative authority.
The EDB, established in 1995 as an attached department of the Ministry of Industries and Production, is mandated to strengthen the country’s engineering base and serves as a key policy and decision-making body on matters relating to the engineering industry.
The internal dispute intensified after Mr Mansoor took charge as CEO in October 2025 and removed Mr Khuda Bakhsh from the EDB on the grounds that his parent organisation was State Engineering Corporation rather than the board.
Mr Khuda Bakhsh challenged the move in court and obtained a stay order. He continues to hold his position as a general manager of the EDB, according to officials familiar with the matter.
Meanwhile, Mr Mansoor himself came under scrutiny over the appointment of several employees on deputation, with questions raised about whether the prescribed procedure was followed.
The Ministry of Industries and Production had objected to the assignment of Mian Usman Ali Shah, a BS-19 officer serving on deputation at the EDB, to the post of general manager, a BS-20 position. The matter was subsequently taken up with the Establishment Division.
The Establishment Division not only sought Mr Shah’s repatriation but also raised a separate disciplinary issue.
In a letter dated Aug 17, 2026, the Deputy Secretary (Discipline-I) of the Establishment Division informed the EDB’s GM (HR/Admin) that Mr Shah had allegedly been nominated in an FIR registered on July 10, 2026, at Bhanamari police station in Peshawar under sections 384, 447, 506, 148 and 149 of the Pakistan Penal Code.
The Establishment Division asked the EDB to respond to the matter, describing it as a serious disciplinary issue.
Officials said the EDB did not comply with the Establishment Division’s direction regarding Mr Shah’s repatriation, further widening differences between the board and the ministry.
The Ministry of Industries and Production subsequently replaced Mr Mansoor on Sept 15, 2026, appointing Faisal Nisar Chaudhary, a BS-20 officer, as CEO of the EDB.
Mr Mansoor, however, challenged his removal before the Islamabad High Court and obtained a stay order, allowing him to continue in office. The development has further complicated the administrative relationship between the EDB and its parent ministry.
The prolonged dispute and uncertainty over the board’s leadership have raised concerns about the functioning of an institution that plays a central role in developing the country’s engineering and manufacturing sectors.
Officials and industry sources say important policy initiatives, including the proposed automotive policy, lithium-battery policy and mobile-device manufacturing policy, have faced delays amid the administrative uncertainty and internal differences.
The developments have also prompted questions about the effectiveness of the EDB’s decision-making mechanism at a time when the government is seeking to expand domestic manufacturing, promote engineering exports and attract investment into technology-intensive industries.
The FIA’s ongoing inquiry is expected to determine whether the appointments and administrative decisions under investigation were made in accordance with applicable rules and whether any financial or other irregularities occurred.
