Islamabad: Prime Minister (PM) Imran Khan approved an economic think-tank’s recommendations regarding the reduction of regulatory restrictions to boost the economy. The group had originally presented more than 60 recommendations for various neglected economic sectors.
The think-tank includes members from both the government and the private sector — with the enterprise aimed at reducing economic restrictions and moving the economy towards digitization. A package based on the group’s recommendations is expected to be announced by next month, after it has been thoroughly vetted.
According to the details available, the PM approved a majority of the recommendations submitted by the think-tank, except for one major proposal that recommended reducing minimum capital requirements for banks. This decision was made based on certain personal concerns, as well as concerns expressed by the governor of the State Bank of Pakistan.
The contention with this rule was that it would free up capital for the housing sector and small and medium enterprises. However, the concern was that instead of using the excess capital for the aforementioned purposes, the banks may look to divert them towards government debt as the safest investment.
The recommendations were presented in a meeting attended by high officials of the federal government and state bank