BAFL 46.25 Increased By ▲ 0.50 (1.09%)
BIPL 20.19 Decreased By ▼ -0.03 (-0.15%)
BOP 5.30 Decreased By ▼ -0.05 (-0.93%)
CNERGY 4.61 Increased By ▲ 0.06 (1.32%)
DFML 16.61 Increased By ▲ 0.64 (4.01%)
DGKC 78.06 Decreased By ▼ -0.63 (-0.8%)
FABL 28.21 Increased By ▲ 0.36 (1.29%)
FCCL 20.07 Increased By ▲ 1.21 (6.42%)
FFL 9.14 Increased By ▲ 0.16 (1.78%)
GGL 12.84 Decreased By ▼ -0.02 (-0.16%)
HBL 111.51 Decreased By ▼ -0.39 (-0.35%)
HUBC 123.69 Increased By ▲ 1.49 (1.22%)
HUMNL 7.65 No Change ▼ 0.00 (0%)
KEL 3.27 Increased By ▲ 0.03 (0.93%)
LOTCHEM 28.30 Increased By ▲ 0.32 (1.14%)
MLCF 41.81 Decreased By ▼ -0.64 (-1.51%)
OGDC 115.39 Increased By ▲ 4.71 (4.26%)
PAEL 19.05 Increased By ▲ 0.16 (0.85%)
PIBTL 5.53 Increased By ▲ 0.06 (1.1%)
PIOC 112.85 Decreased By ▼ -2.45 (-2.12%)
PPL 100.04 Increased By ▲ 5.05 (5.32%)
PRL 25.64 Increased By ▲ 0.27 (1.06%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 67.52 Increased By ▲ 3.02 (4.68%)
SSGC 12.54 Increased By ▲ 0.27 (2.2%)
TELE 8.46 Increased By ▲ 0.07 (0.83%)
TPLP 13.39 No Change ▼ 0.00 (0%)
TRG 85.46 Increased By ▲ 1.36 (1.62%)
UNITY 26.60 Increased By ▲ 0.75 (2.9%)
WTL 1.57 Increased By ▲ 0.03 (1.95%)
BR100 6,377 Increased By 82.2 (1.31%)
BR30 22,376 Increased By 439.3 (2%)
KSE100 62,493 Increased By 801.8 (1.3%)
KSE30 20,829 Increased By 274.3 (1.33%)

ISLAMABAD: Economic Advisory Group (EAG) has suggested reducing tariff and non-tariff restrictions, greater integration with regional trade blocs, reducing custom and regulatory duties, and replacing them with a uniform tariff across all sectors.

According to ‘EAG Vision’ document, which gave comprehensive suggestions for preparation of economic policy and new vision for economic transformation, under four themes: revisiting pricing regimes which currently govern agriculture and commodities sectors; revamping of the education system with the aim to introduce and mainstream pathways for vocational training at the level of higher and post-secondary education; reduction in tariff and non-tariff trade restrictions and greater integration with regional trade blocs; and finally, rethinking industrial policy with special emphasis on moving away from picking winners to rewarding innovators, improving land-use within cities, and simplification on the tax code.

The EAG Vision document further suggested the government, especially Ministry of Planning, to replace support price in agriculture sector with crop insurance for small farmers. It suggested liberalising the licensing regime for setting up factories.

It asked to revisit the Provincial Sugar Factories Control Act and the relevant laws, and reform them with the objective of promoting competition. It was also suggested that in line with recommendations under tariff reforms, have a uniform tariff on the import or any commodity.

It suggested to allow businesses to import any commodity anytime without requiring any approvals and they should allow to store commodities to incentivize the development of storage infrastructure.

EAG formed to deliberate on Pakistan’s economic policies

The EAG Vision document suggested strengthening industrial and infrastructure capacity so as to attract efficiency-seeking Foreign Direct Investment (FDI) rather than market-seeking FDI.

It asked to actively engage with regional trading blocs with the aim to either join them or enter into an FTA with them. Globally, intra-regional trade average 40 percent or more, while for Pakistan, it is less than five percent.

It is also suggested that there is also a need for targeted interventions for Skill Development Programs. It suggested introducing and strengthening high-tech/end trades like artificial intelligence, robotics, 3D animation, game development, android, Apps development, cloud computing, renewable energy security, industrial automation, etc. It is also suggested to maximise industry ownership through apprenticeship legislation and time-bound and target-specified incentives.

There is a need to develop financial market to increase sources of funding for businesses; (i) work with relevant departments at the national and sub-national level to reduce compliance costs for businesses with respect to obtaining access to utilities, paying taxes and trading across borders, (ii) work with the judiciary to reduce contract enforcement costs for business and other necessary legal reform, (iii) work with city government to reforms zoning regulation to facilitate domestic commerce and reduce the cost of commercial space for businesses, (iv) focus on public investment reform, which is important as the private sector is not interested in going to vast parts of Pakistan. In such a scenario, the government’s ability to design and execute publicly-funded projects and enabling infrastructure is critical.

Copyright Business Recorder, 2021

Comments

Comments are closed.

EAG suggests drastic change in tariff regime

Four countries: FBR decides to ink deal on Electronic Data Interchange

Pakistan not on agenda of IMF Executive Board meeting

ECP likely to get election funds soon

Overbilling in violation of Nepra Act: All Discos including KE to face legal proceedings

Commodities being imported by TCP: Govt decides to change payment mechanism

Israeli ground forces move into southern Gaza

War risk insurance rates edge up

Cypher case: IK says will ‘drag’ Bajwa, US embassy officials through the courts

Nov oil sales rise 9pc MoM

Issues related to KE: Al-Jomaih shares its ‘ordeal’ with PM, petroleum minister