A meeting of the Economic Advisory Council (EAC) was held here Friday under the chairmanship of Federal Minister for Finance and Economic Affairs Dr Hafeez Shaikh. Renowned experts including Shaukat Tarin, Nasim Beg, Dr Ejaz Nabi, Ms Ayesha and others gave multifarious recommendations on the national economy in the context of upcoming budget.
Dr Hafeez Pasha acted as convenor of the EAC. Addressing the participants, the Finance Minister said that current economic realities should be seen in the context of post-NFC and 18th Amendments scenario as more than 50 percent revenues are going to province. He stressed the participants of the EAC to see that the scenario is changed. Sub-committees of the EAC on agriculture, capital markets, fiscal co-ordination, tariff rationalisation, regional trade and social sector presented detailed analysis and recommendations for respective sectors. Very constructive proposals were shared which will be considered by the government while finalising the upcoming budget.
The subcommittee headed by Nasim Beg gave proposals regarding incentivising banks to lend the desired sector, promoting thrift/increasing on saving rate, rewarding taxpayers to allow some investment abroad, tax on interest income and creating employment through construction. He also presented the SECP's recommendations regarding encouraging corporatization and removing anomalies and tax abridge and consolidation of corporate sector. Other participants critically analysed the proposed recommendation of the subcommittee. They also discussed the possible issues on the housing finance proposals.
The second subcommittee headed by DCPC and Chairman FBR analysed the tariff and rationalisation structure. The committee pointed that the existing SRO structure makes tariff structure convoluted and complex. The committee severely criticised the SRO culture saying that it is adversely affecting the SMEs and all industries in Pakistan. They further proposed that the existing culture should be changed and a tariff rationalisation committee comprising representatives from both private and public sector should be constituted to give operational recommendations.
The third subcommittee on fiscal co-ordination headed by Chairman FBR gave presentation on the future reforms made by FBR to enhance revenue. Chairman FBR informed the council that tax base would be broadened in two ways. One through increase in the number of taxpayers and other through launching automated integrated tax management system. He also said the FBR will promote tax filing culture which would motivate people to file their tax returns. He also remarked that FBR would provide relief to salaried class. In the same way, proposed FBR policies will encourage investment in the country, added by Chairman FBR.
The EAC's subcommittee on agriculture headed by Hassan Ali Chaniho highlighted the problems and possible solutions in agriculture sector. Chaniho's recommendations include enhancement of productivity through organic fertilisers, ensure credit from banking sector, promotion of value addition, ensuring quality seeds, introduction of agriculture development account in banks and giving incentives to local manufacturer on agriculture machinery.
The fifth subcommittee headed by Dr Ejaz Nabi presented geostrategic position of Pakistan in the context of India-Pak trade liberalisation. He said future lies in Indian Ocean rather Atlantic Ocean and Pak-India trade story should be seen in larger regional context. He gave a strategic vision of Pakistan as a regional hub for Iran, Afghanistan, CARs, China and India. It is time to turn our weaknesses into strengthens, added by Dr Ejaz in view of India-Pak trade.
The sixth subcommittee gave recommendations on textile industry and its related issues. The committee highlighted some administrative and operational issues in textile sector. While concluding the meeting, Dr Abdul Hafeez Shaikh thanked the participants for their valuable suggestions. He remarked that these recommendations and suggestions will not only help formulate current budgetary policies but also prove beneficial to devise future economic course of the country. -PR
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