Govt constitutes 21-member EAC for macroeconomic stabilisation

• EAC to seek advice on short-term macroeconomic stabilisation, structural reforms to achieve sustained progress.
• To review overall economic condition of country and propose possible corrective measures.
• Analysts term constitution of such forums routine and a public relations exercise keeping in view past experiences.

ISLAMABAD: The government formed the 21-member Economic Advisory Council (EAC) headed by Prime Minister Shehbaz Sharif, The News reported. The EAC will seek suggestions on short-term macroeconomic stabilisation and structural reforms to achieve stable and sustained economic progress.

A statement issued to notify the constitution of EAC stated that the prime minister is pleased to announce the development.

The purpose of the council's establishment is to review and formulate economic policies more holistically, as per the Terms of Reference (ToRs) for EAC.

The scope of work and structure of the EAC is mandated to review the overall economic condition of the country and propose possible corrective measures considering available resources, analyse the effectiveness of subsidies, protection, and other financial support by the government to the state-owned enterprises (SoEs) and other vital sectors of the economy in the context of overall cost and benefit analysis of such subsidies/protection, review the existing market imperfections in the various important sectors of the economy to promote competition by correcting the market distortions, to advise the government ministries, organizations, bodies and various project implementing agencies in formulating evidence-based policies, to help in finding the technical expertise and human resource that may be required to carry out the requisite financial and economic analysis/studies.

A meeting of the EAC under the chairmanship of PM Shehbaz Sharif will be convened on a weekly basis on the issues of national economic importance. The specific sub-committees will be formed for focused work with the timelines and defined scope. The EAC may co-opt any other member as per requirement.

The composition of the council shall constitute federal ministers, economists, former bureaucrats, businessmen and bankers, including Shahid Khaqan Abbasi, Ahsan Iqbal Chaudhary, Miftah Ismail, Saleem Mandviwalla, Marriyum Aurangzeb, Dr Ayesha Ghous Pasha, Mussadiq Malik, Tariq Pasha, Mian Muhammad Mansha, Mohammad Ali Tabba, Arif Habib, Dr Asim Hussain, Atif Bajwa, Faisal Farid, Aurangzeb, HBL, Waqar Ahmad Malik, MD/CEO Fauji Foundation, Salman Ahmed, Shahzad Salim, Rahman Naseem, Musadaq Zulqarnain and Dr Ijaz Nabi.

The Economic Advisory Council will initially meet once a week (virtually/in person). The specific sub-committees will be formed for focused work with the timelines and defined scope. The EAC may co-opt any other member as per requirement.

Many independent analysts termed the constitution of such forums as routine and a public relations exercise keeping in view the past experiences where it did not contribute much to bringing any good input to policy formulations.

In the past, several committees were constituted but failed to achieve the desired results. Now it is hoped that this EAC will contribute to policy formulation for the best of the country instead of protecting the vested interests of specific individuals.