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Islamabad, May 25, 2012 (PPI-OT): A meeting of Economic Advisory Council (EAC) held here today under the chairmanship of Federal Minister for Finance and Economic Affiars Dr. Abdul Hafeez Shaikh. Renowned experts including Mr. Shaoukat Tareen, Mr.Nasim Beg, Dr. Ejaz Nabi, Ms Aysha and others gave multifarious recommendations on the national economy in context of upcoming budget. Dr. Hafeez Pasha acted as convener of the EAC.
While addressing the participants of EAC, 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 % revenues are going to province. He stressed the participants of EAC to see that the scenario is changed.
Sub-Committees of EAC on Agriculture, Capital Markets, Fiscal Coordination, Tariff Rationalization, 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 finalizing the upcoming Budget.
The subcommittee headed by Mr. Nasim Beg gave proposals regarding incentivizing 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 encourage corporatization and remove anomalies and tax abridge and consolidation of corporate sector. Other participants critically analyzed the proposed recommendation of the sub committee. They also discussed the possible issues on the housing finance proposals.
The second Subcommittee headed by DCPC and Chairman FBR analyzed the tariff and rationalization structure. The committee pointed that the existing SRO structure makes tariff structure convoluted and complex.
The committee severely criticized the SRO culture and said 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 rationalization committee comprising representatives from both private and public sector should be constituted to give operational recommendations.
The third Subcommittee on fiscal coordination headed by Chairman FBR gave presentation on the future reforms made by FBR to enhance revenue. Chairman FBR informed 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 informed that FBR will promote tax filing return 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.
EAC’s subcommittee on agriculture headed by Mr. Hassan Ali Chaniho highlighted problems and possible solutions in agriculture sector. His recommendations include enhancement of productivity through organic fertilizers, making ensure credit form 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 context of India-Pak trade liberalization. He told that future lies in Indian Ocean rather Atlantic Ocean and India Pak 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 a time to turn our weakneses into strengthens, added by Dr. Ejaz in view of India-Pak trade.
The sixth committee 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 suggestion. He remarked that these recommendation and suggestion will not only help formulate current budgetary policies but also beneficial to devise future economic course of the country.
For more information, Contact:
Ministry of finance
Government of Pakistan
Room # 514, Block-‘Q’, Finance Division,
Pak. Sectt. Islamabad
Phone: 92 51 9206382
E-mail: so_coord1@finance.gov.pk