KARACHI: Pakistan’s chances of being removed from the Financial Action Task Force’s (FATF) grey list remained on track, with experts telling Arab News on Thursday that a lot would be based on a “fair review of its progress.”
Their comments were in the wake of an announcement a day earlier whereby Pakistan had said that it would amend its Anti-Money Laundering Act as a measure.
If implemented, the proposed changes to the legal framework would make money laundering a non-bailable offense with a maximum prison sentence of 10 years, a fine of up to Rs5 million, and forfeiture of property involved in the offense or any property of corresponding value.
“FATF’s decision to allow more time to Pakistan to meet all the requirements to come out of the grey list gave the government a breathing space. Now, officials are making the Anti-Money Laundering Act, 2010, more effective to cover Benami accounts [or accounts opened in other people’s names] and assets. For this purpose, after a delay of nearly two years, the Benami Transactions Prohibition Act of 2017 has also been notified,” Dr. Ikram ul Haq, an expert on financial and legal matters, told Arab News.
The FATF, in a statement issued in February, had termed Pakistan’s progress on the implementation of its action plan as “limited” and asked Islamabad to address all strategic deficiencies.
“Pakistan has revised its TF [terror financing] risk assessment. However, it does not demonstrate a proper understanding of the TF risks posed by Da’esh (ISIS), Al-Qaeda, JuD [Jamaat-ud-Dawa], FIF [Falah-e-Insaniat Foundation], LeT [Lashkar-e-Taiba], JeM [Jaish-e-Mohammad], HQN [Haqqani Network] and persons affiliated with the Taliban,” the statement added.
However, people involved in the action plan and its implementation believe that the country would be removed from the grey list provided that an impartial review was conducted.
“Pakistan has made huge progress in implementing the AML [anti-money laundering] laws. In fact, our laws are far better than India’s. They [FATF] should also share progress of other countries with us. I am sure if a fair review is conducted, Pakistan would be out of the grey list,” Ashfaq Yousuf Tola, a senior chartered accountant who is privy to developments related to the subject, told Arab News.
Pakistan believes that in the presence of India, FATF would not be able to do a fair review. Recently, Finance Minister Asad Umar had asked the global watchdog’s president to appoint any other FATF member as the co-chair of the Asia-Pacific Joint Group in place of India “to ensure that FATF review process is fair, unbiased and objective.”
“Our AML and Benami laws are almost the same as those of India and our implementation is far better than India,” Tola, who has always maintained that Pakistan’s inclusion in the grey list was unfair, said.
According to Dr. Haq, Pakistan faces the challenge of enforcement since “enormous funds are invested in real estate where ‘benamidars’ [or name-lenders] are used to disguise the real ownership and sources of funds.”
“The PTI government,” he added, “has decided to remove all such legal lacunae. Once it is done and a proper crackdown is launched against the offenders, there are chances that the country would get its name removed from the grey list.”
Pakistan seeks to curb money laundering ahead of crucial review
Pakistan seeks to curb money laundering ahead of crucial review
- Devises measures to make it a non-bailable offense with a maximum sentence of 10 years
- Country could be removed from global watchdog’s grey list if analysis fair, experts say
UAE-Pakistan trade pact in ‘final stage of signing,’ envoy says in address to Lahore chamber
- UAE ambassador tells business leaders Comprehensive Economic Partnership Agreement near signing
- Chamber cites $7.8 billion remittances from UAE in 2024, urges broader cooperation beyond petroleum trade
ISLAMABAD: The Lahore Chamber of Commerce & Industry (LCCI) on Wednesday quoted the UAE’s ambassador as saying the Emirates and Pakistan were in the “final stage” of signing a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and remove obstacles.
Pakistan and the UAE maintain close economic ties, with the Gulf state serving as one of Islamabad’s largest trading partners and a major source of remittances. Trade between the two countries currently stands at around $8–10 billion, according to figures from the LCCI, while millions of Pakistanis live and work in the UAE. A Comprehensive Economic Partnership Agreement, a broad trade framework aimed at reducing tariffs, easing market access and strengthening investment flows, would formalize and potentially deepen those ties.
Speaking at the Lahore Chamber, UAE Ambassador Salem Mohammed Al Zaabi said the CEPA would help remove business obstacles and deepen economic ties between the two countries.
“Pakistan and the UAE are at the final stage of signing a Comprehensive Economic Partnership Agreement, which would significantly boost bilateral trade and remove business obstacles between the two countries,” Al Zaabi was quoted as saying in a statement issued by the Lahore Chamber.
He added that the existing trade volume of around $8–10 billion did not reflect the full potential of the relationship and his government had a “clear directive” to double the figure as soon as possible.
Al Zaabi said the UAE was expanding investments in Pakistan in sectors including infrastructure, ports, aviation, agriculture, minerals and railways.
He said discussions with Pakistan’s Railway Ministry were progressing and that new agreements related to supply chain connectivity from northern regions to Karachi, including the possibility of a dry port, would be announced soon. He added that the Joint Business Council between the two countries was being activated and efforts were underway to convene its meeting to enhance institutional cooperation.
The UAE ambassador also outlined steps being taken to streamline visa procedures and improve skilled labor mobility.
Referring to the visa process, Al Zaabi said both countries were working to streamline procedures through digital systems and appreciated the efforts of Pakistan’s Ministry of Interior, according to the LCCI statement. He said discussions were underway with the Punjab Skilled Labor Authority to enhance cooperation in skilled workforce mobility.
He added that he was “personally working at operational and technical levels to ensure that all signed agreements, including CEPA and other trade frameworks, are fully implemented.”
The envoy said the UAE was rapidly shifting toward an artificial intelligence-driven and digitized economy, with nearly 99 percent of government services available online.
Highlighting his country’s focus on information technology, digital banking and innovation, the ambassador invited the Lahore Chamber to share a comprehensive document outlining challenges and investment opportunities. He said the UAE Embassy would consider recommendations from the business community and extend facilitation to investors from both sides, adding that special consideration would be given to visa recommendations forwarded by the Chamber for genuine business cases.
He also acknowledged the contribution of the Pakistani community to the UAE’s development, particularly in aviation and finance, and noted that the UAE economy had diversified, reducing oil dependence to below 25 percent.
LCCI President Faheem Ur Rehman Saigol described the UAE as one of Pakistan’s most important trading partners in the Middle East and a major source of remittances.
He said remittances from the UAE reached $7.8 billion in 2024, while Pakistan’s exports to the UAE stood at $2.1 billion in the 2024–25 fiscal year. Imports from the UAE were around $8 billion, largely consisting of petroleum products, according to the Chamber’s statement.
The figures highlight a persistent trade imbalance, with Pakistan importing significantly more from the UAE than it exports, even as millions of Pakistani workers live and work in the Gulf state.
Saigol said there was “vast untapped potential” for cooperation in renewable energy, agriculture and food processing, information technology, logistics, construction, tourism, health care and mining. He proposed establishing dedicated display centers for Pakistani products in the UAE, leveraging the country’s role as a global re-export hub, and called for stronger engagement through trade delegations, business-to-business meetings and joint ventures.
