ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday reconstituted the 22-member Economic Advisory Council (EAC) to review the prevailing economic conditions in the country and propose stabilisation measures and possible corrective actions within the available resources.
The EAC includes a large number of members of the ruling PML-N and its coalition partners, pro-PML-N business leaders and representatives of the leading banks and Fauji Foundation, besides a few private sector economists. Only three members of the previous EAC under the PTI government remain, including Arif Habib, Mohammad Ali Tabba, and Dr Ijaz Nabi.
To be presided over by the prime minister himself, the council will have eight members from the PML-N, including former PM Shahid Khaqan Abbasi, Planning Minister Ahsan Iqbal, Finance Minister Miftah Ismail, Information Minister Marriyum Aurangzeb, Minister of State for Finance Dr Aysha Ghous Pasha and Minister of State for Petroleum Mussadiq Malik. The council also includes Tariq Pasha, a former chairman of the Federal Board of Revenue and a staff officer for former finance minister Ishaq Dar. Former finance minister Saleem Mandviwalla and former petroleum minister Dr Asim Hussain represent the PPP.
Mian Muhammad Mansha is on top among business leaders in the EAC, followed by Muhammad Ali Tabba and Arif Habib. Bankers, entrepreneurs and executives like Atif Bajwa of MCB/Alfalah, M. Aurangzeb of HBL, Faisal Farid of Pepsico and Waqal Ahmad Malik of Fauji Foundation are also part of the new EAC. Shahzad Salim of Independent Power Producers, Salman Ahmed, Rahman Naseem and Musadaq Zulqarnain are other members of the council.
Ten members of the previous EAC, who have now been excluded, include Dr Abid Sulehri, Salim Raza, Asif Qureshi, Dr Rashid Amjad, Dr Salman Shah, Shaukat Tarin, Farooq Rahmatullah, Dr Shamshad Akhtar, Sultana Allana and Zaid Ali Muhammad.
Under the terms of reference, the EAC will review and formulate economic policies in a holistic manner and advise on short-term macroeconomic stabilisation as well as structural reforms for stable and sustained economic progress. The council will initially meet on a weekly basis and then occasionally, or twice a year, to discuss issues of national economic importance.
Importantly, the body will analyse 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 and protection.
The council will also review the existing market imperfections in various important sectors of the economy to promote competition by correcting market distortions and advising the government ministries, organisations, bodies and various project implementing agencies in formulating evidence-based policies.
The EAC will also help the government find the technical expertise and human resources required to carry out the requisite financial and economic analysis and studies. A specific sub-committee will be formed for focused work with a defined scope and timelines.
It may be recalled that the previous EAC had also completed a series of sector-wise challenges and a road map for recovery and made them public with a lot of fanfare at a series of events led by then finance minister Shaukat Tarin, but most of them remained on the bookshelves.
Published in Dawn, April 29th, 2022
