EAC for tougher measures

The Economic Advisory Council (EAC) has reportedly recommended to the government to take ''tough economic decisions'' to deal with the economic challenges irrespective of political cost and withdraw subsidies as well as tax relief to higher income slabs. Sources said that first meeting of the EAC presided over by Prime Minister Imran Khan was informed that some major changes are being brought in the budget for the current fiscal year to make it realistic.
The government also promised to form working groups on debt, fiscal and current account sides in the next meeting, most probably next week, and the Prime Minister assured the EAC that the proposals suggested by it will be fully implemented, said the sources.
According to sources, the EAC suggested for paying more focus on external sector, revival of the economy and social side in the budget. The government was also asked to present realistic picture of the economy to the masses. Some members suggested that tax exemption to higher brackets of income tax slabs needs to be withdrawn and subsides should be provided to value-added industry instead of bigger group.
Additionally, the tax incentives granted in the budget (2018-19) have serious revenue implications and need to be reviewed, the EAC suggested.
The meeting was told that the budget presented by the previous government was not realistic and working was under way to make it realistic to meet the economic challenges. A participant of the meeting said no discussion took place about the possible International Monetary Fund (IMF) bailout.
According to an official handout issued by the Prime Minister''s Office, the Prime Minister in his opening remarks regretted that in the past the poor and middle class segment of society remained neglected in the economic policies. Social and economic well-being of the middle class was not considered, he said and added that primary focus of Pakistan Tehreek-e-Insaf government''s policies will be well-being of the lower middle class of the country.
He said, "We will provide equal opportunity to everyone as no nation can progress without taking care of the middle class."
The Prime Minister said without making all the segments of society stakeholders, the dream of economic prosperity and economic development cannot be achieved. Participants of the meeting gave proposals to deal with the economic challenges. Those who attended the meeting were Finance Minister Asad Umar, Minister for Planning Khusro Bukhtiar, Advisor to Prime Minister Razaq Dawood, Advisor to Prime Minister Dr Ishrat Hussain, Governor State Bank of Pakistan Tariq Bajwa, Secretary Finance Arif Ahmed Khan, Dr Farrukh Iqbal, Dr Ashfaque Hasan Khan, Dr Ejaz Nabi, Dr Abdul Qayyum Sulehari, Dr Asad Zaman, Dr Naveed Hamid, Syed Saleem Raza and Saqib Sherani.