Major restructuring of economic team under consideration, high-powered committee likely
Business
Sources said the committee would be empowered to make major economic decisions, potentially curtailing the authority of the finance minister.
ISALAMABAD (Mudassar Ali Rana) - The government is considering a major restructuring of its economic decision-making framework as part of efforts to stabilize and strengthen the national economy.
According to sources, a proposal has been discussed with Prime Minister Shehbaz Sharif to establish a high-powered economic committee tasked with taking key policy decisions amid mounting economic challenges. These challenges include weak macroeconomic indicators, a widening trade deficit, declining exports, underperformance of the Federal Board of Revenue (FBR), and persistent revenue shortfalls.
Under the proposed plan, Deputy Prime Minister and Foreign Minister Ishaq Dar would chair the committee, while ministers currently part of the economic team would serve as its members. The final decision on the committee’s formation rests with Prime Minister Shehbaz Sharif.
Sources said the committee would be empowered to make major economic decisions, potentially curtailing the authority of the finance minister. It would review, endorse, and support decisions taken by the finance minister to ensure coordinated and effective economic policymaking. The proposal has been discussed at the highest levels as part of a broader strategy to improve economic performance.
It was further revealed that the prime minister has become increasingly active on economic matters in recent weeks, and key responsibilities may be entrusted to Ishaq Dar to deliver better results. Concerns within the government include the rising trade deficit, falling exports, weak revenue collection, and FBR’s poor performance.
Official data shows Pakistan’s trade deficit exceeded $19 billion from July to December of the current fiscal year. Exports declined by 8.7 percent, while imports rose by 11.28 percent during the same period. The overall trade deficit has increased by 34 percent year-on-year.
Meanwhile, sources also indicated that changes in the federal cabinet are under consideration, with low-performing ministers possibly being replaced and the cabinet size reduced. Speculation continues over the future of Finance Minister Muhammad Aurangzeb, though no replacement has been finalized.
