Imran ropes in foreign experts to rebuild Pakistan's debt-ridden economy
What's the story
Pakistan PM Imran Khan has roped in some renowned foreign economists in the newly-constituted economic advisory panel to provide the best possible professional advice to his cash-strapped government on prudent economic policies.
The immediate challenge for the Khan-led government is to arrange finances to fill about a $10 billion gap that is arising due to higher outflows than estimated inflows.
Here's more.
Details
Here are details on Pakistan's account deficit, foreign currency reserves
Pakistan's current account deficit stands at $18bn, while its foreign currency reserves are just over $10bn, enough to cover two months of imports, according to figures released before Khan was sworn-in as PM.
One of the first tests facing Khan's government is whether to seek a bailout from the International Monetary Fund or to turn to China for more economic aid.
Information
Khan to head the new Economic Advisory Council
Unlike past practices, the new 18-member Economic Advisory Council (EAC) will be headed by the PM himself to ensure that the best possible professional advice is available to the government to inform, optimize, and synergize the formulation and implementation of its economic and financial policies.
Past EAC working
Reports say EAC meetings lacked seriousness over issues
The first meeting of the council will be convened soon, Dawn newspaper reported.
In the past, EACs were headed by finance ministers with no definite agenda for regular meetings. It was observed that EAC met even once in four months and its advice was not considered seriously. Consequently, EACs have become mere debating forums, the report said.
Information
EAC expected to work in non-partisan, collaborative manner
According to the terms of reference, the Ministry of Finance will be the nodal government agency for the EAC, which will function in an entirely non-partisan manner and is expected to strengthen existing state institutions in a collaborative and concerted manner.
Distinguished members
11 out of 18 EAC members are from private sector
Out of the EAC's 18 members, seven belong to government and 11 are from the private sector.
From the private sector, three leading international academics are- Atif R Mian, Department of Member Economics, Princeton University, Asim Ijaz Khawaja, Sumitomo-FASID Professor of Member International Finance and Development at the Harvard Kennedy School, and lmran Rasul, Professor of Economics, Department of Member Economics, University College, London.
Recommendations
Khan asked EAC to give recommendations in two weeks
The EAC is expected to play a pivotal role in strengthening the government's capacity to design sound and effective policies for rapid and continued social and economic advancement, human resource development, and improvement of business processes.
Khan has asked the committee to give its recommendations in two weeks for possible steps to be taken for expedient return of unlawfully acquired assets from abroad.