In recent years data mining has become a popular technique for extracting information from the databases of many types in different areas of commerce and industry. The strength of data mining comes from its flexibility of working on any kind of database and its ability to discover previously unknown and sometimes surprising results. Competitiveness increasingly depends on improving the quality of decision making from past information. Improved knowledge of engineering capabilities and products enables engineers to better target future production strategies. To move from quality control to quality assurance and reduced error occurrence, companies need to exploit their existing knowledge and previous experiences more effectively. Data mining analysis offers many potential benefits in this context. This paper briefly highlights the benefits that can be gained through the application of data mining technology in different sectors of Pakistan in general and in engineering sector in particular