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 mulls enforcing remote work, online classes rules to conserve energy amid Mideast crisis
- Government committee reviews contingency plans as Iran closes Strait of Hormuz, disrupting global oil supply
- Petroleum Division official warns fuel costs may rise if Pakistan is forced to import oil from longer routes
ISLAMABAD: Pakistan is considering a range of options to conserve energy which include ordering corporate offices to ensure work-from-home facility for staff and directing universities to shift classes online, a senior official confirmed on Thursday as the ongoing Middle East conflict threatens to disrupt the global supply of petroleum products.
These proposals were discussed by a cabinet committee constituted by Prime Minister Shehbaz Sharif to monitor petroleum prices on Wednesday. The committee meets daily to review the stock of petroleum products in Pakistan and assess the evolving regional situation.
Tensions in the Middle East have surged since Saturday after the US and Israel’s coordinated strikes against Iran and Tehran’s retaliatory attacks against both and Gulf nations. Iran has closed the crucial Strait of Hormuz waterway, through which roughly 20 percent of global oil and gas supply passes through.
Pakistan relies heavily on Middle Eastern crude oil, with the majority of its energy imports typically transiting through the strait, making any disruption a major risk to domestic fuel supplies.
“Yes, proposals such as work-from-home for corporate offices and online classes for higher education institutions were discussed in the high-level committee,” a senior official of the finance ministry told Arab News on condition of anonymity, as he was not authorized to speak to the media.
“However, final decisions will be taken in a couple of days after the action plan is finalized based on priority areas.”
The official said the government may also advise the public to avoid unnecessary travel, adding that fuel supplies would be ensured for various industries and other critical sectors.
Meanwhile, Pakistani authorities have imposed a ban on the export of petroleum condensate, a chemical used by oil refineries, to secure its domestic supply in case the Middle East crisis worsens further.
A senior official from Pakistan’s Petroleum Division told a Senate committee on Wednesday that the country currently has petroleum reserves sufficient to last around one month.
“The country has around one month of refined petroleum products available, along with more than ten days’ worth of crude oil stocks,” the official said, also requesting anonymity.
He added that the government is working on contingency planning to meet future energy requirements if the conflict continues.
“Pakistan is exploring options to import fuel from Saudi Arabia through the Red Sea to ensure uninterrupted supplies,” he said.
Pakistan’s petroleum ministry confirmed the same in a statement on Wednesday, following Petroleum Minister Ali Pervaiz Malik’s meeting with Saudi Ambassador Nawaf bin Said Al-Malki.
The official warned that petroleum product prices may rise in line with global market trends, particularly if supplies have to be transported through alternative, longer routes.
He added that in the event of a prolonged conflict, Pakistan may consider importing fuel from the US and other countries.
