EAG welcomes focus on economy, cautions on overstretch of NSP
In its initial review of the recently released National Security Policy, the independent Economic Advisory Group (EAG) has welcomed the recognition of economics as the keystone of Pakistan’s national security while noting that under-investment in development is clearly detrimental to national security, especially in the medium and long-term. EAG cautions that in seeking to address […]
EAG analysis shows a rise in exports due to international demand and devaluation
Figure 1: Decomposition of Textile Exports into Price and Quantity Effects (based on PBS data as of 17th December 2021) The EAG in its vision document noted that the policy landscape in Pakistan has historically been dominated by sectoral policies which continue to prevent economic resources from moving towards more productive activities. Importantly, these policies […]
EAG reviews SSRC Reforms Agenda
Economic Advisory Group (EAG) in its Vision document has strongly argued in favour of revisiting the support price regimes and the relevant laws that hinder competition, including in the agriculture and commodities sector. A general principle we espouse is that economic activity should be contestable, i.e. individuals and firms should face the pressure of unrestricted […]
Roadmap for Economic Transformation launched
The Economic Advisory Group (EAG) has launched a document “New Vision for Economic Transformation”, which analyses the factors hindering the efficient allocation of resources hence contributing to the economic slowdown, and presents practical suggestions. The document was presented by Mr. Javed Hassan, Chairman EAG, and Mr. Ali Salman, Executive Director Prime. Mr. Asad Umar, Federal […]
EAG clarifies its independent status after the establishment of group by similar name by the government
Responding to the announcement of formation of a “Macro-Economic Advisory Group” by the Government of Pakistan, the independent Economic Advisory Group (EAG) has issued a clarification. The Economic Advisory Group (EAG) is an independent group of economists, policy analysts, financial experts, and academics to deliberate on Pakistan’s economic policies. EAG was constituted in January 2021 […]
Liberalize and integrate: EAG outlines its vision of a new auto policy
Transformation of the Auto Industry needed from protection and indigenization to liberalization and integration The independent Economic Advisory Group (EAG) convened detailed deliberations to assay the outcome of contemporary automotive development policy, and the initiatives proposed in the Finance Bill 2021-22. It observed that prevalent policies do not present a path for transformation for the […]
EAG Cautions Against Risks of a Rise in Public Debt, Fiscal Deficit
The independent Economic Advisory Group has welcomed the federal government budget for announcing measures to boost industrial activity and export performance through wide scale tariff reduction but has cautioned against the aggressive optimism shown in the form of higher level of tax and non-tax revenue estimates. The EAG expressed the hope that the loans extended […]
EAG: Pakistan needs to switch from ‘borrowed growth’ to ‘earned growth’
The Economic Advisory Group (EAG), an independent policy network, recognises the need for achieving high growth rate, as stated by the new Finance Minister. However, the EAG emphasises that for any such growth to be sustainable it must involve addressing the distortions in the prevailing incentive structure which have continued to undermine efficient allocation of […]
EAG supports SBP autonomy, calls for clear performance benchmark
The Economic Advisory Group (EAG) met to deliberate on central bank autonomy in the context of the SBP Amendment Act, 2021, which the federal cabinet passed last week. The bill advocated for more autonomy for Pakistan’s central bank, its independence from the Ministry of Finance, and the abolishment of the Monetary Policy and Fiscal Coordination […]
Economic Advisory Group for a reset of Industrial Development Strategy
In its third meeting, the Economic Advisory Group has outlined its vision for Pakistan’s industrial development breaking away from the mould of old industrial policy set in 1960s. The members of the Group highlighted that the old industrial policy was defined on the basis of selection of winners and losers by the government which led […]