18-member EAC constituted by PM

ISLAMABAD: Prime Minister Shehbaz Sharif has constituted an 18-member high-powered Economic Advisory Council (EAC) for seeking advice on short-term macroeconomic stabilization as well as structural reforms for stable and sustained economic progress.

The government re-constituted this high-profile EAC at a time when Pakistan and the IMF are making all-out efforts to revive the stalled $6 billion program under the Extended Fund Facility (EFF). The past experience of establishing the EAC failed to achieve the desired results and most of the time it was considered to be a debating club instead of a forum for formulation of key economic policies. This time there is one good thing in the newly-constituted EAC as no businessman was included in this forum because there was an impression that they used this forum to resolve their own problems from different ministries, especially on taxation issues.

According to an official notification issued by the Ministry of Finance Economic Advisory Wing on Monday, in continuation of this Division's letter of even number dated 27-04-2022, the prime minister of Pakistan has approved the re-composition of the Economic Advisory Council (EAC). The EAC shall be chaired by the prime minister. The new composition of the

EAC included Shahid Khaqan Abbasi, PMLN senior leader, Ahsan Iqbal Chaudhry (Federal Minister for Planning), Dr Miftah Ismail (Minister for Finance), Ms Marriyum Aurangzeb (Minister for Information), Dr Aisha Ghaus Pasha (Minister of State for Finance and Revenues), Musadiq Masood Malik (Minister for Energy), economists Dr. S Akbar Zaidi, Dr Nadeem Javed, Dr Samina Khalil, Dr Masood Ahmed, Dr Ijaz Nabi, Dr Hafeez Pasha, Dr Ali Cheema, Dr Syed Muhammad Hassan Shah, Dr Akhtar Hussain Shah, Dr S Manzoor Ahmad, Khurram Hussain and Sakib Sherani.

According to Terms of Reference (ToRs), the Economic Advisory Council (EAC) is being established to review and formulate economic policies in a more holistic manner. The EAC will advise on short-term macroeconomic stabilization as well as structural reforms for stable and sustained economic progress. The EAC will be convened on a weekly basis on issues of national economic importance.

The scope of work and structure of the Economic Advisory Council illustrates that (i) it will review the overall economic condition of the country and propose possible corrective measures considering the available resources of the country. ii. Analyze the effectiveness of subsidies, protection, and other financial support by the Government to the State-Owned Enterprises (SOEs) and other vital sectors of the economy in the context of overall cost and benefit analysis of such subsidies/protection.

iii. Review the existing market imperfections in various important sectors of the economy in order to promote competition by correcting the market distortions. iv. To advise the government ministries, organizations, bodies, and various project implementing agencies in formulating evidence-based policies. v. To help in finding the technical expertise and human resource that may be required to carry out the requisite financial and economic analysis/studies.

"The Economic Advisory Council will initially meet once a week (virtually/in person). Specific sub-committees will be formed for focused work with the timelines and defined scope. The EAC may co-opt any other member as per requirement."

Meanwhile, Prime Minister Shehbaz Sharif has constituted the Business Advisory Council (BAC) comprising federal ministers, parliamentarians and top business tycoons. According to an official notification issued by the Ministry of Finance on Monday, the prime minister has been pleased to constitute the Business Advisory Council (BAC).

The BAC shall be chaired by the Prime Minister and the composition of the Business Advisory Council shall include Shahid Khaqan Abbasi, Ahsan Iqbal Chaudhry, Dr. Miftah Ismail, Ms. Marriyum Aurangzeb, Dr. Aisha Ghaus Pasha, Musadiq Masood Malik, Engr. Khurram Dastgir Khan, Syed Naveed Qamar, Saleem Mandviwalla, Senator Talha Mehmood, Asif Riaz Tata, Textile Naveena Group, Arif Habib, Financial Services/ Fertilizer, Aurangzeb HBL, Muhammad Ali Tabba, Lucky Group, Fawad Anwar Al-Karam Textile, Tariq Pasha, ex-chairman FBR (IRS), Mian Muhammad Mansha, MCB/Nishat Group, Atif Bajwa Banker/CBO Bank Alfalah, Waqar Ahmad Malik, MD/CEO Fauji Foundation, Shahzad Saleem Nishat CEO, Rahman Naseem, textile/fertilizer, Faisal Farid, Pepsi Co, Musadaq Zulqarnain, CEO Interloop, Dr. Asim Hussain, Salman Ahmed, Asif Peer (CEO Systems Pvt. Ltd), Irfan Iqbal Sheikh (FPCCI), Hasnain Khurshid Ahmed (Sarhad Chambers of Commerce & Industry), Fida Hussain (Quetta Chambers of Commerce), Amanullah Talpur (Progressive Grower), S Anis Ahmed (MD Abbot Labs) Agha Shahzaib Durrani.

According to Terms of Reference (ToRs) for BAC, the notification stated, it is being established to review and formulate business friendly policies under a competitive environment to scout the marketplace, gauge future trends and seek new strategic position in the global market, as well as provide a catalyst in the country's efforts to sustain economic progress.

The BAC will be engaged on monthly basis in the core business issues, review and formulate business friendly policies to boost industrial sector. It will help in executing policy actions in a best possible professional way to achieve the planned targets.

The scope of BAC includes (i) to review and advise how the business establishments can flourish in a competitive and business friendly environment.

ii. To review exports structure for further diversification and value addition to find out possibilities of exports expansion.

iii. To promote and formulate business linkages with leading multinationals for the development of supply chain JVs so that Pakistani companies could grow and flourish further on modern lines to cope with the global dynamic business environment.

iv. Analyze the effectiveness of the role of government in the provision of facilities to the business class especially pertaining to ease of doing business and other financial support provided to SMEs to create export-oriented economy.

v. To advise/help government authorities in implementing business oriented projects/programs by formulating evidence based policies. (b) BAC Structure i. Business Advisory Council will initially meet once a month (virtually/ in-person). ii. Specific sub-committees will be formed for focused assignments mandated with the timelines and defined scope. iii. The BAC may co-opt any other member as per requirement.