ISLAMABAD: Pakistan’s federal cabinet has approved the draft of a financial agreement to be signed with the United Arab Emirates next month, Pakistani officials said on Wednesday, part of a renewed effort to counter money-laundering and terrorism financing.
Last June, the global watchdog Financial Action Task Force placed Pakistan on a grey-list of countries with inadequate money laundering and terror financing controls. The country now has until September to implement a ten-point action plan or face being downgraded to a blacklist, making it infinitely harder for its government to access international markets at a time when the economy is stumbling.
“An information exchange agreement is to be signed between Pakistan’s Financial Monitoring Unit and the Financial Intelligence Unit of the UAE,” said Muneer Ahmad, the director of Pakistan’s Financial Monitoring Unit, adding that the deal would help Pakistan seek information from UAE’s financial departments about money-laundering and other suspicious financial transactions from Pakistan.
“The cabinet has accorded approval to the agreement, but it will take some time before it is signed,” Ahmad said.
Pakistan’s Information Minister Fawad Chaudhry said the agreement was expected to be signed next month and would “help us trace Pakistanis who have illegally transferred money to the UAE and invested in real estate there.” He said the agreement would also facilitate holding “joint investigations” of money laundering and terrorism financing cases.
According to the Dubai Land Department, Pakistanis are among the top ten investors in Dubai’s property sector. Much of the money, according to government officials, is remitted to the UAE through illegal means.
Shahid Assad, a former member of the Federal Board of Revenue (FBR) who has been part of investigations of offshore assets of Pakistanis, said the bilateral information exchange treaty with the UAE would help expedite the sharing of information to counter money-laundering.
“Pakistan has received information of over 100,000 citizens who have invested in different countries, including the UAE, through the platform of the OECD [Organization for Economic Cooperation and Development],” Assad said.
In February, the FATF watchdog said Pakistan had made only “limited progress” on curbing money laundering and terrorism financing, failing to show a proper understanding of the risks posed by Islamic State, Al Qaeda and others.
Pakistan to sign illegal money transactions agreement with UAE in May
Pakistan to sign illegal money transactions agreement with UAE in May
- Agreement will allow joint investigations, facilitate Pakistan to seek information from UAE
- Pakistanis are among top ten investors in real estate sector, claims Dubai Land Department
Pakistan PM to attend World Economic Forum’s annual meeting in Switzerland next month
- The WEF meeting, scheduled to be held in Davos on Jan. 19-23, will focus on global challenges, public-private dialogue and cooperation
- Government, business, civil society and academia leaders will engage in forward-looking discussions to address these issues, set priorities
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif will travel to Switzerland next month to attend the 56th annual meeting of the World Economic Forum (WEF), Pakistani state media reported on Monday.
The WEF annual meeting, themed as ‘A Spirit of Dialogue,’ will be held from Jan. 19 to Jan. 23 in Davos, where world leaders from government, business, civil society and academia will engage in forward-looking discussions to address global issues and set priorities.
Prime Minister Sharif is expected to interact with global leaders and investors on economic challenges, regional and international issues and various opportunities for cooperation.
On Monday, Deputy PM Ishaq Dar presided over a meeting in Islamabad to oversee preparations for Sharif’s upcoming visit to Switzerland to attend the WEF meeting, the Radio Pakistan broadcaster reported.
“Dar instructed to maximize the engagements with the incoming Heads of States, Governments and senior leadership of economic, business and financial institutions,” the report read.
The WEF meeting program will be structured around key global challenges where public-private dialogue and cooperation, involving all stakeholders, is necessary for progress, according to the WEF website.
In addressing these challenges, growth, resilience and innovation will serve as cross-cutting imperatives, guiding how leaders engage with today’s complexity and pursue tomorrow’s opportunities.
Pakistani foreign ministry officials briefed the deputy PM about preparations for the WEF meeting, according to Radio Pakistan. The participants of Monday’s meeting in Islamabad discussed in detail the bilateral component and media engagements during the visit.
“He [Dar] further stressed that opportunities be explored to foster collaboration with private sector business entities,” the state broadcaster said.
