Prime Minister Imran Khan has directed State Bank of Pakistan (SBP) to review policy on interest rates and government lending to facilitate market liquidity, well-informed sources told Business Recorder. Prime Minister's Adviser on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh and Governor, State Bank, Reza Baqar were directed to present a way forward on these issues.
The country's business community had complained to the Prime Minister that due to high interest rates, their costs of production and cost of doing business increased manifold; furthermore due to massive borrowing by the government, banks feel more comfortable in extending loans to government instead of private sector.
The recent interaction of Governor State Bank with the business community apparently was a follow-up of the discussions held between the Prime Minister and Governor central bank.
The sources said, Prime Minister has sought details/list of all FBR cases stuck in courts due to stays and to also share this information with Minister for Law and Attorney General for their early disposal.
Prime Minister, who is facing criticism due to current economic impasse, has also directed his Adviser on Finance to prepare a strategy for identifying transactions and measures that can generate quick non tax revenues and actively pursue them for early completion with clear responsibilities and timelines.
Prime Minister, an official said, who previously held general meetings on different economic issues, has started giving timelines to the concerned Ministries/Divisions with respect to different tasks.
Ministry of Energy, Ministry of National Food Security and Advisor on Commerce and Industry have been directed to prepare sectoral policies for key economic sectors including Small and Medium Enterprises (SMEs) trade, energy, agriculture etc. within one month's time.
Adviser on Commerce and Textile has been tasked to present textile and leather policies, expected to be tabled within a couple of weeks.
Dr Hafeez Shaikh has been also been directed to share the following strategies: (i) economic growth strategy; (ii) growth targets of each sector; (iii) identification of and prioritization of key focus areas for growth in industry, SME, services and agriculture sectors along with specific steps and responsible Ministries/organisations and timeframe to stimulate growth and achieve the targets.
According to sources, provinces have been asked to highlight issues with respect to agriculture support prices and discuss it with federal government for timely decisions and interventions.
Adviser on Commerce and Industries has been given the assignment to prepare proposal for reviving factories that were closed due to loan difficulties. He has also been given three months to revive Pakistan Steel Mills (PSM) by attracting private sector investment. Ministry of Privatisation has already started the process of hiring Financial Adviser for this purpose.
Secretary Housing, Chairman Naya Pakistan Housing & Development Authority (NPHDA) and Chairman Board of Investment (BoI) will share ease of doing business plan for revival and fast tracking development for construction sector. The plan would include steps, procedures, NOC's and timeframes which can be eliminated or reduced for the purpose, after consultation with the provincial governments and other stakeholders.
Power Division would provide ease of doing business plan for revival and fast tracking development of the power sector. The plan would include steps, procedures, NOC's and timeframes. Industries Division would also share ease of doing business plan.
Chairman Federal Board of Revenue, Shabbar Zaidi has been directed to present a plan to the Prime Minister to improve things like governance, service delivery and performance in FBR. Routine inspections of
industrial units by the prescribed regulators was banned by the Government of Punjab a few years back to improve ease of doing business and reduce rent seeking; and provincial governments have been tasked to bring proposals for discussion on this issue.
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