Finance minister tasks EAC to formulate time-bound plans

ISLAMABAD: Minister for Finance and Revenue Shaukat Tarin on Thursday tasked the newly-formed economic advisory council (EAC) to devise short, medium and long-term plans with respective timelines to optimise the financial and economic policies.

Presiding over the first session of the EAC after its re-constitution at the finance division, Tarin formulated sub-groups and assigned areas for further deliberation and directed to firm-up proposals after seeking input from all concerned. The minister emphasised short, medium and long-term plans with respective timelines for an effective way forward. The finance minister emphasised the importance of evolving consensus on macro-economic stabilisation measures and reform agenda for an inclusive and sustained economic growth after taking all stakeholders on board.

Tarin appreciated the innovative ideas given by the members and emphasised active participation of key stakeholders in evolving consensus for sound economic planning. He underscored importance of provincial participation in concerned areas for working out solutions to the current economic problems.

“EAC is a well-informed and well-represented forum comprising of official and private representatives. There is a need to instill confidence and build public sentiment for sustainable and all-inclusive economic growth,” he said. “Collective decision-making would help in putting an end to repeated boom-and-bust cycles which played havoc with our national economy over the years.”

EAG believes that as Pakistan moves from stabilisation to growth, it needs a new framework for sustainable growth, which must accompany a rise in the productivity levels across board. This can be achieved, according to the group, by discontinuing the support of existing inefficient businesses and sectors, and instead promoting continuous reallocation of resources from less to more productive areas. Inefficient and poor performing businesses must be allowed to exit their industries and replaced with businesses that are not only more globally competitive but can also perform favourably in a challenging environment without the need to extract government support. Tax and trade policies shield dominant and sclerotic incumbent players from competition by innovative new entrants.

Minister for Industries and Production Khusro Bakhtyar, Minister for Food Security and Research Fakhar Imam, Minister for Economic Affairs Division Omar Ayub, Adviser to the PM on Commerce Razak Dawood, Adviser to the PM on Institutional Reforms and Austerity Ishrat Hussain, and others from private sector attended the meeting

The EAC will follow a consultative process and suggest policy initiatives to optimise and further strengthen the financial and economic policies aimed at enhancing public welfare. The EAC will meet frequently and members would present recommendations before the committee for detailed discussion.

Special Assistant to PM on Revenue Waqar Masood outlined key priority areas for productive discussion including sustained and inclusive economic growth, employment generation, price stability mechanism, tax reforms, housing sector, ease of doing business, pension reforms, rationalisation of subsidies, food security, revamping power and energy sectors, social protection network, health and improvement in overall governance. The private members of the economic advisory council also gave their input regarding strengthening blue economy, need for road-to-market infrastructure development, import substitution, mechanized farming, gender-sensitive employment initiatives, harmonising tax and tariff structures, climate change, small and medium enterprise sector, and streamlining circular debt and other power related issues.