The think-tank, recently constituted under the directions of Prime Minister to deliberate on the Covid-19 related economic downturn and mitigation of ensuing risks, identified key areas to boost economy during the Coronavirus crisis.
Dr. Abdul Hafeez Sheikh, Advisor to the Prime Minister on Finance and Revenue chaired the second meeting of the think-tank, according to a press statement issued by the Finance Ministry. The forum has been mandated to provide platform for collective thinking on the emerging situation resulting from the Covid-19 related medical crisis and its spillover to economy.
Its other members include Shaukat Tareen, Dr. Ishrat Husain, Dr. Ijaz Nabi, Sultan Ali Allana, Arif Habib, Dr. Waqar Masood. Advisor to PM on Commerce and Finance Secretary are also part of it.
After extensive deliberations on emerging themes, the forum identified key areas for policy interventions, including monetary affairs and banking sector, fiscal matters and public finances, social safety nets, SMEs and large businesses, commodity prices, public health challenges and role of private sector and NGOs.
Advisor to PM on Finance apprised the forum about developments at G-20 forum regarding debt relief package. There were chances of $1.8 billion debt deferment for one year, whereas proceeds worth $1.4 billion under IMF had already been received, he said.
Participants highlighted the need for further downward revision in policy rate coupled with passing on the benefits of slashed oil prices in global market to public.
The focus of the deliberations remained on strengthening of aggregate demand and supply of the economy, with emphasis on lower income groups and small firms. Need for further liquidity for banks was discussed as strong and vibrant banking sector is essential to boost economy under such strong recessionary headwinds.
The forum discussed the need and scope for bailout package for large businesses and exporters apart from gauging the viability of reduction of GST on consumer goods, from 17% to 5%, to kick-start consumer spending for the next 2 years.
Economists within the think-tank stressed for the need of designing PSDP to facilitate labor intensive projects apart from crafting robust agriculture financing plans. Professionals within group stressed for the need of oil price hedging, power sector debt securitization and creation of fiscal space through rescheduling of foreign and domestic debts.
The need for designing lending programs for housing sector participants came under consideration including facilitation of end-users.
