May 20, 2008	Tuesday	Jamadi-ul-Awwal 14, 1429

ISLAMABAD, May 19: Syed Naveed Qamar, who has been looking after the finance portfolio since the resignation of Ishaq Dar, has stressed the need for food security, overcoming the energy crisis and other issues affecting the common man.

Presiding over the first meeting of the economic advisory council here on Monday, he urged the council to come up with solutions to the country’s macro-economic problems.

He expressed the hope that the committee would be able to devise short- and medium-term measures to improve the economy and provide relief to the common man.

The council is tasked with providing independent advice to the prime minister and the government on economic policies and reforms agenda.

The council’s convener, Shaukat Tarin, said the EAC would try to formulate proposals to address the current economic situation. The deputy chairman of the Planning Commission said that the council should address the immediate problems of the common man.

Finance Secretary Farukh Qayum gave a presentation on the economic situation and the coming budget. The council would hold several meetings during the week.

Meanwhile, oficial data compiled by the finance ministry show that slippages in fiscal account and unprecedented increase in oil prices have contributed to the widening of trade and current account deficits.

It cited the extra-ordinary surge in the imports of POL products and palm oil and a one-off large import of wheat, raw cotton and fertilisers as reasons for the widening current account deficit.

Fiscal deficit for the year was targeted at 4 per cent of GDP. Recent data suggest that during the first nine months (July-March) of the current fiscal year, the deficit had crossed the target for the year and stood at 5 per cent of GDP. If the government takes no action, including an increase in domestic oil prices, the budget deficit for the year may rise to 9.5 per cent of GDP.