Special panel to rejig economic policies

Supra body firms up recommendations for export-led economic growth model

ISLAMABAD: Prime Minister Nawaz Sharif has set up a supra body to suggest growth and job-oriented economic policies after top leadership of the ruling party, particularly Chief Minister Shahbaz Sharif, apprehended that the current policies may cost the party the next general elections.

After continuous push from Punjab chief minister, Prime Minister Nawaz called a huddle of senior party leaders on February 12 at the PM House, said sources in PM's Office. Six prominent business executives of the country also attended the meeting.

At the end of the meeting, the premier constituted a growth committee under his Special Assistant on Revenue Haroon Akhtar Khan and appointed the six business executives as its members. There was no representation of the Finance Ministry and the Planning Ministry in the supra body, which has now become an issue in implementing its recommendations.

It was a rare move that the prime minister did not make Finance Minister Ishaq Dar head of a committee, particularly one dealing with his core areas of responsibilities. Dar, at one point in time, had remained head of at least 46 various committees.

The sources said the PM Nawaz directed the committee head to keep the finance minister in the loop during the deliberations. A PM Office handout of February 12 also confirms the constitution of the growth panel without divulging any details.

This body has held deliberations, which have also been shared with the prime minister in presence of other party members, the sources said. The panel has firmed up recommendations on adopting export-led economic growth model in letter and spirit, addressing issues of long-term financing for industries, housing mortgages and more importantly on role of investigation agencies in private business deals.

“The committee has finalised its recommendations to spur growth for creating jobs and now the ball is in the court of the government,” said Arif Habib, a prominent industrialist and member of the committee.

The PM's decision to set up the supra body reflects growing confrontation within the ruling party, as some senior party members complain that Finance Minister Dar has been given a prominent role in the present setup, said the sources while speaking on condition of anonymity.

They said that the formation of supra body was the result of such confrontation. People close to CM Shahbaz Sharif said that the CM was of the view that the current economic policies were suffocating growth and increasing unemployment in the country. During the last two fiscal years, the average economic growth rate remained 4%, which was below the official targets and almost half than the required pace to absorb young entrants in the job markets.

The source said CM Shahbaz wanted the Finance Ministry to switch from stabilisation polices to growth-oriented policies during the remainder period of the government. Finance Minister Dar was not available for comments.

Published in The Express Tribune, March 23^rd, 2016.