ISLAMABAD: A think tank recently formed by Prime Minister Imran Khan on Sunday selected six broad priority domains to boost social safety nets, ensure food security and give maximum boost to the country’s economy through accelerating aggregate demand, easing out supply concerns and ensuring stability of financial system.
Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh chaired the 3rd meeting of the think tank to assess the emerging situation resulting from the Covid-19 related economic slowdown and its impact on individuals and businesses.
The forum selected six broad priority domains including boosting social safety nets (Ehsaas and allied initiatives), food security and safety of supply chains, boosting role of banks and financial institutions in appropriately designing incentives for market participants, kick-starting low and medium cost housing projects, making PSDP and Provincial ADPs responsive to labour intensive propositions and business facilitation through fiscal interventions,” said a press statement issued by the Finance ministry.
The forum decided that fiscal proposals including changes in rates of Sales Tax, refunds etc. would be deliberated with FBR in detail, so that the next federal budget addresses these burning concerns which are essential to spur consumer spending, it added.
Moreover, proposals related to financial and banking matters including review of payroll refinancing scheme, incentives to banks to finance MFIs and MFB, measures for enhancement of remittances and injecting additional liquidity to commercial banks by cutting CRR/SLR and CCB, were decided to be dealt by forum in more details.
The think tank has devised an “Impact and Urgency Response Matrix” by identifying multiple actionable themes with low, medium and high economic impacts, pitched against short, medium and long time horizons.
According to the statement, the forum has the mandate to provide cognitive support to on-going response of the federal government apart from extending help in designing new initiatives and mid -course correction of interventions already under execution.
The forum has representation form eminent public finance practitioners, financial analysts, bankers, development and monetary economists and academia, the statement said adding the participants included PM’s Adviser t on Commerce, Finance Secretary, Dr Ishrat Husain, Shaukat Tareen, Dr Ijaz Nabi, Sultan Ali Allana, Arif Habib and Dr Waqar Masood.
During the meeting, the adviser engaged all participants in extensive deliberations, while defining that the focus of the forum would remain on the short term urgently needed measures to give boost to economy, which is under acute stress due to both demand and supply compression.
He emphasised the need to learn from international experience in designing fiscal, monetary and other policy responses by the Federal as well as provincial governments.
Abdul Hafeez Shaikh emphasised the need for evolving road map for chosen domains, thereby bringing clarity about what needs to be done and who will do it.
The need for real-time data and research was highlighted in development of clear roadmap and implementation framework.
The Adviser concluded the session with the consensus decision that detailed roadmaps for chosen six domains would be prepared so that respective ministries are engaged, to create further value in on-going plans meant for giving economic boost.
It was further decided that implementation review of the PM Economic Stimulus Package (worth Rs 1,240 billion) would be a regular feature in next think tank meetings to ensure value for money apart from smooth service delivery to deserving segments of society.
