What advice EAC has given to government over IMF and economic crisis?

[The Eagle]

What advice EAC has given to government over IMF and economic crisis?
7 Sep, 2018

ISLAMABAD: The Economic Advisory Council (EAC) has advised the PTI government to apprise the nation over the economic conditions of the country and further take tough decisions to revive the economy.

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The first meeting of the EAC was held on Thursday.

The EAC has asked the government to take tough decisions to overcome the economic crisis engulfing the country.

However, the government remains unsure about availing another IMF bailout and a technical assistance team from the Washington-based lender is expected to visit Pakistan next month to guide Islamabad on improving data standards, reports *Express Tribune.*

Also, three overseas Pakistani economist’s Dr Asim Khawaja, Dr Atif Mian based in the US and Dr Imran Rasul in the UK skipped the maiden EAC meeting and were supposed to join via video-link.

The maiden meeting of the newly reconstituted EAC was presided over by the Prime Minister Imran Khan.

The EAC was apprised by the Finance Minister Asad Umar, that the government hadn’t taken any concrete decision regarding Pakistan seeking an IMF bailout or not, since internal discussions were still happening.

Furthermore, the EAC was told the government would devise its policy options to manage the fiscal and external sector challenges by the start of October, officials said.

Previously, Mr Umar said the government would formulate its policy by end-September.

The finance minister apprised the EAC about a visit of an IMF technical team in October to guide the government on data standards and will be its second visit in a space of three months.

During the meeting, PM Imran Khan said due to wrong economic policies of the previous PML-N government, poverty and inequality in the country had risen.

He added, the previous government snubbed the low-income groups.

According to sources, none of the private sector members of the EAC advised the government to seek an IMF bailout.

However, they did ask the government to take tough economic decisions to rectify the macroeconomic imbalances plaguing the country’s economy.

The private sector EAC members told the government to apprise the public about the actual position and the need for raising utility tariffs, sources revealed.

Mr Umar told the EAC the government would take tough decision whenever required and would take the public into confidence.

 

[shah_123]

What could be those tough economic decisions to rectify macro economics imbalances.

 

[A.A. Khan]

EAC exposing itself just like they were worthless in previous tenures they are BS here as well.
The EAC is made up of academics and economists with background in same mosnster lending organizations like IMF.
They should've find some good people like Dr. Shahid Hasan siddiqui for their EAC. EACs are only made to take loans from IMF and powerpoint presentation headed by joke Finance Minister. They never have helped befor ewont help here lso.

PTI in the only political party that has won from all the metros of Pakistan [KArachi, Quetta, Lahore, Peshawar, Islamabad] and its majority voters come from. Putting more indirect taxes minus no reform in civil services, reining bureaucrat mafias or taking money from IMF will result in disaster for PTI. ITs a fragile coalition govt. th e opposition will throw them out of govt. within 2 years once IMF program starts, which starts from strangulating the poor and the middle class.

 

[Death Professor]

Also, three overseas Pakistani economist’s Dr Asim Khawaja, Dr Atif Mian based in the US and Dr Imran Rasul in the UK skipped the maiden EAC meeting and were supposed to join via video-link.

Hmmmm....

The private sector EAC members told the government to apprise the public about the actual position and the need for raising utility tariffs, sources revealed.
Mr Umar told the EAC the government would take tough decision whenever required and would take the public into confidence.

Hmmm..... Well we could only hope that Nawaz and Zardari cases are prosecuted fast, so that Awam ko thora kumm nachora jai. I do understand the decision behind the tariff raise but we need that stolen money fast.

 

[313ghazi]

My advice would be;

1. Carry out an economic census. Find out the costs and incomes of every household. Compare this against assets.

2. Pass a law that all employees must be paid into a bank account. Introduce a PAYE scheme.

3. Tax people on assets and wealth, especially unused land.

4. Reduce state subsidies.

5. Reduce indirect taxation like GST and VAT.

6. Reduce imports of frivilous stuff.

7. Ease imports of essential stuff like green energy parts/supplies.

8. Try debt consolidation.

9. Try to get loans which were known to have been spent on corruption wiped out (there is international precident for this).

10. Meet the FATF criteria.

11. Make east of doing business a priority.

12. open up export business incubators which setup local businesses with the skills/means to try to access the international market.

 

[The Eagle]

PTI is in not in favour to fully depend upon IMF, knowing implications. I expect PM may ask for public support & help rise economy through utility tariffs rise. However, laundered and looted money stashed abroad is recoverable but will take time. And, as Government denied any help from IMF; it comes to mind that IMF will use its all might to pressurize xyz country or use any tactics so could PTI Led Government wouldn't be able to recover much to help country's economy. After all, the stolen money belongs to IMF's etc blue eyed boys those who help them influence Pakistan policies through funds.

 

[volatile]

It will be IMF option as these so called intellect based are mainly foreign agenda

 

[313ghazi]

Well we know why some people were missing from the meeting now.

https://twitter.com/x/status/1038058009845485568

 

[shah_123]

PTI is in not in favour to fully depend upon IMF, knowing implications. I expect PM may ask for public support & help rise economy through utility tariffs rise. However, laundered and looted money stashed abroad is recoverable but will take time. And, as Government denied any help from IMF; it comes to mind that IMF will use its all might to pressurize xyz country or use any tactics so could PTI Led Government wouldn't be able to recover much to help country's economy. After all, the stolen money belongs to IMF's etc blue eyed boys those who help them influence Pakistan policies through funds.

increase in petrol prices, utility tariffs, gst/vat, indirect taxation wht etc., are all tried and tested failures (TTFs).

 

[shah_123]

is there an Agricultural Economist in the panel?
@BHarwana

 

[Mrc]

U don't need academics... u need accountants to go through govt dept spending and make necessary cuts

 

[BHarwana]

is there an Agricultural Economist in the panel?
@BHarwana

I don't think so.

U don't need academics... u need accountants to go through govt dept spending and make necessary cuts

You need economists but not the ones linked to IMF and world bank.

 

[shah_123]

I don't think so.

Than use your contacts and start a campaign to include Agricultural economist in the panel.
we need huge investment in this sector.

 

[BHarwana]

Than use your contacts and start a campaign to include Agricultural economist in the panel.
we need huge investment in this sector.

My friend the problem with agriculture is different we need modernization of the sector and education.

 

[ziaulislam]

EAC exposing itself just like they were worthless in previous tenures they are BS here as well.
The EAC is made up of academics and economists with background in same mosnster lending organizations like IMF.
They should've find some good people like Dr. Shahid Hasan siddiqui for their EAC. EACs are only made to take loans from IMF and powerpoint presentation headed by joke Finance Minister. They never have helped befor ewont help here lso.

PTI in the only political party that has won from all the metros of Pakistan [KArachi, Quetta, Lahore, Peshawar, Islamabad] and its majority voters come from. Putting more indirect taxes minus no reform in civil services, reining bureaucrat mafias or taking money from IMF will result in disaster for PTI. ITs a fragile coalition govt. th e opposition will throw them out of govt. within 2 years once IMF program starts, which starts from strangulating the poor and the middle class.

Imf is there to provide money to avoid defaulting

Imf is a fail safe..its not monstrous organization ...nobody asks you to go to IMF ...

Monstrous are our corrupt leaders who bankrupt a country and go to IMF and than blame IMF..they just want to mint power as they have either dual nationality or can buy one in minutes ( yes u can buy nationality with money cheapest one are like Malta cost less than a million dollars. You can even buy USA rationality )
Our leaders kniw when mint is empty they will simply leave showing jiyalas and matwals a middle finger

Tell me what's monstrous about IMF???

U don't need academics... u need accountants to go through govt dept spending and make necessary cuts

U need investment ..? than u need to do deep reforms
U need banks like work bank.

My advice would be;

1. Carry out an economic census. Find out the costs and incomes of every household. Compare this against assets.

2. Pass a law that all employees must be paid into a bank account. Introduce a PAYE scheme.

3. Tax people on assets and wealth, especially unused land.

4. Reduce state subsidies.

5. Reduce indirect taxation like GST and VAT.

6. Reduce imports of frivilous stuff.

7. Ease imports of essential stuff like green energy parts/supplies.

8. Try debt consolidation.

9. Try to get loans which were known to have been spent on corruption wiped out (there is international precident for this).

10. Meet the FATF criteria.

11. Make east of doing business a priority.

12. open up export business incubators which setup local businesses with the skills/means to try to access the international market.

1.Cut loses
Currently we are losing a trillion rupees in power, gas, state enterpsies
2. Make buisness easier
3. Copy India and make business online by introducing e banking and payment methods
4. Wealth tax
5. Tax retail sector

increase in petrol prices, utility tariffs, gst/vat, indirect taxation wht etc., are all tried and tested failures (TTFs).

Key is too cut loses abd decrease indirect tax to stimulate growth
A trillion rupees is lost every year with 1/3 just in two sectors power and gas..this done not mostly by domestic but by comerical sector under political patronage