ISLAMABAD: The Minister for Finance and Revenue Dr Abdul Hafeez Shaikh underline the need of active role of the Monetary and Fiscal Policies Coordination Board (MFPCB) for designing policies to address the economic challenges.
The finance minister, while chairing a meeting of the MFPCB on Thursday, directed to make this platform more effective for achieving better coordination among all concerned to attain desired macroeconomic goals.
The minister also stressed the need for timely provision of economic data for effective policy making.
The board should be more proactive in reviewing the impact of fiscal and monetary policies on economic growth, employment, investment and external sector of the economy, added Shaikh.
The Adviser to the PM on Commerce and Investment, Deputy Chairman Planning Commission, Governor SBP, Dr Asad Zaman, member and other senior officials of the Finance Division participated in the meeting.
The chairman FBR also attended the meeting on special invitation.
While presenting the current economic situation, the finance secretary apprised that the timely actions taken by the government have mitigated the severe impact of pandemic on the economy as compared to the other economies of the world.
The economy has witnessed a considerable recovery during the first five months of FY2021 as a result of continued domestic economic activity.
The governor SBP briefed the meeting that monetary policy is accommodative due to Covid-19 and has paved way for economic recovery during first quarter of fiscal year 2020-21.
There is an improvement in the country’s external accounts.
The steady worker remittance inflows and improved trade balance of goods and services were the notable developments, he added.
In his remarks, the deputy chairman Planning Commission stated that the first two quarters of the fiscal year 2020-21 have been marked by a rebound in economic activities amid the Covid-19.
The economic recovery can be attributed to accommodative fiscal policy.
He further stated that large scale manufacturing and housing sectors had started showing signs of growth and improvement.
The Adviser for Commerce and Investment mentioned that during July-November FY2021, Pakistan’s trade deficit has registered modest improvement as exports increased by two percent year-on year-basis growth, while imports remained stagnant.
He reiterated that the fiscal policy reforms being undertaken under the National Tariff Policy must continue.
The adviser commerce also added that domestic industry, especially export oriented, may be provided needed support to expand their operations.
Similarly, the inflationary pressures must be kept in check to ensure competitiveness.
Dr Asad Zaman, member acknowledged timely fiscal and monetary measures taken by the government during the challenging times.
He further mentioned that comprehensive data analysis is key to rational decision making.
Copyright Business Recorder, 2020
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