ISLAMABAD: The Economic Advisory Council (EAC) here on Thursday deliberated to devise a comprehensive plan for empowering eight public sector enterprises by creating a holding company of transitional nature supervised and headed by a credible and non-influenced board.
Federal Minister for Finance and Economic Affairs, Dr. Abdul Hafeez Shaikh presided over the first meeting of the Economic Advisory Council for the coming Budget 2011-12.
The meeting was attended among others by Dr. Hafiz A.Pasha (Convener EAC), Shaukat Tarin (former Finance Minister), Deputy Chairman, Planning Commission, Minister of State for Finance and Economic Affairs, Governor, State Bank of Pakistan, senior officials, and members of EAC including Dr. Ijaz Nabi, Jahangir Khan Tarin, Salim Raza, Farooq Rahmatullah, Ali Habib, Nasim Beg, Ms. Shahnaz Wazir Ali, Farid Rehman, Hassan Ali Chaniho and Arshad Zuberi.
The Finance Secretary presented a detailed overview of the economic situation, including the performance of key sectors of the economy and the upcoming budget for FY-2011-12.
The FBR gave a detailed briefing on the revenue collection and highlighted the recent measures undertaken to achieve the revenue target. Presentation also outlined an enforcement plan, risk based audit, broadening of tax base and successful implementation of the fully automated refund system.
The Planning Commission presented the government's new growth strategy based on improving productivity, governance and market reforms, urban management, connectivity and youth empowerment.
The EAC discussed the following important proposals and said that for providing impetus to the public sector enterprise (PSE) reform through creation of a holding company of a transitional nature to undertake restructuring of the 8 existing PSEs under reform and also include several other large PSEs in its ambit.
It decided that the holding company to be led by a credible board of directors and the EAC to be closely involved in the budget making process.
The EAC also discussed the idea of taxing of all incomes irrespective of the source of origin including agriculture and service sector.
The EAC said that following the 18th Amendment, greater involvement of the provincial governments in policy making and the EAC to interact with all the stakeholders.
The meeting decided that the Austerity Plan and the Governance Plan approved by EAC and the Cabinet should be implemented in letter and spirit.
It further decided to reform the Planning Commission for strengthening its role in the planning process.
It was also decided that the Planning Commission will chart a framework to operationalize the conceptual framework of growth strategy for EAC and subsequent implementation by the government.
The EAC also set up working groups to formulate recommendations in key areas like governance, energy, trade, taxation, capital markets, banking and agriculture among others.
It was decided that EAC would meet more frequently and next meeting will be held before end of April, 2011 to finalize proposals for the Budget.
The Finance Minister highly appreciated the valuable contribution of all EAC members especially Dr. Hafeez A. Pasha and Shaukat Tarin.
He also assured all support to EAC for its future work.
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