- A meeting was held by Prime minister Imran Khan on Saturday in Islamabad, which approved a set of recommendations to tap the potential of neglected sectors of the economy. This is majorly by digitizing the economy.
- The bankers present at the think-tank put forward the point that this would spare hundreds of billions of rupees that could be lent to small and medium enterprises. However, the Prime minister was of the point of view here that no guarantee could be provided of the banks interested in investing in the government debt, to produce the easiest and safest returns.
- The prime minister here stressed on the point that the current subsidies of electricity and gas have been equally beneficial for both the rich and poor. He emphasized on providing relief to the lesser fortunate segments of the society through targeted subsidies.
- . He said that a substantive package has been announced aiming to increase the employment opportunities as well as adding to the affordable housing of the poor. An example was that of the Ehsas program, initiated to alleviate poverty along with a strategy to reach out to those in need.
A meeting was held by Prime minister Imran Khan on Saturday in Islamabad, which approved a set of recommendations to tap the potential of neglected sectors of the economy. This is majorly by digitizing the economy. The meeting was attended by Adviser on Finance Dr Hafeez Sheikh, Adviser on Institutional Reforms Dr Ishrat Hussain, Governor State Bank of Pakistan Reza Baqir and former finance secretary Dr Waqar Masood Khan. Adviser on Commerce Razak Dawood, Shaukat Tareen, Sultan Alana, Dr Ijaz Nabi and Arif Habib joined via video link. With representation from both the government and private sector, over 60 recommendations in 8 areas of the economy have been finalized. These are expected to be announced in the shape of a package, by the prime minister after having fulfilled the formalities underway.
The bankers present at the think-tank put forward the point that this would spare hundreds of billions of rupees that could be lent to small and medium enterprises. However, the Prime minister was of the point of view here that no guarantee could be provided of the banks interested in investing in the government debt, to produce the easiest and safest returns. The SBP agreed to notify about 20 of the 60 proposed notifications but also had reservations for over a dozen proposals, which also included that of lowering of capital requirements for the banks.
Dr Hafeez Sheikh here added the issue of the low prices of utilities and also separation of tax policies from the FBR’s operations. The government obviously faces challenges in balancing between giving electricity subsidies and in turn increasing prices to reduce flow of circular debt. 60% lesser power subsidies have been allocated in the budget now. The prime minister here stressed on the point that the current subsidies of electricity and gas have been equally beneficial for both the rich and poor. He emphasized on providing relief to the lesser fortunate segments of the society through targeted subsidies.
Mr. Khan stated that since day one, the government has been trying to balance the economic activity amidst the Covid-19 pandemic. He said that a substantive package has been announced aiming to increase the employment opportunities as well as adding to the affordable housing of the poor. An example was that of the Ehsas program, initiated to alleviate poverty along with a strategy to reach out to those in need.
