ISLAMABAD: Pakistan’s foreign office on Monday rejected India’s defense minister’s recent statement that the Financial Action Task Force (FATF) could “blacklist Pakistan anytime” as the Asia-Pacific Group on Money Laundering (APG) said in one of its reports that Islamabad had either fully, largely or partially complied with 36 of the 40 parameters set by the global watchdog to curb money-laundering and terrorism financing.
Islamabad was formally placed on the FATF gray list in June last year due to “strategic deficiencies” in its anti-money laundering and terrorism financing regime. The South Asian nation has since accused its arch-rival India of trying to get Pakistan downgraded further to the watchdog’s blacklist.
The foreign office said in a statement on Monday that India’s Defense Minister Rajnath Singh’s remark reinforced “Pakistan’s concerns, repeatedly highlighted to the FATF membership, about India’s attempts to politicize the FATF proceedings to further its narrow, partisan objectives.”
Singh claimed last week that the FATF could “blacklist Pakistan for terror financing anytime.”
However, Pakistan said that India’s incessant smear campaign and blatant partisanship called into question its credentials to be the co-chair of the Asia-Pacific Joint Group reviewing Pakistan’s progress in implementing the FATF Action Plan.
“We hope that the broader FATF membership would take cognizance of India’s continuing malicious campaign against Pakistan and reject any attempt aimed at politicizing the FATF proceedings,” the foreign office said. “It is important for FATF to ensure that the process remains fair and unbiased.”
Meanwhile, the APG’s 228-page report on money-laundering and terror financing in Pakistan came just a week ahead of the FATF’s plenary in Paris on Oct 13-18 that would determine whether Islamabad should be removed from its gray list or downgraded further to its blacklist.
The report based on Pakistan’s performance as of October 2018 showed that the country was fully “compliant” only in one aspect relating to financial institutions’ secrecy laws. It was found “partially compliant” on 26 recommendations and “largely compliant” on nine others.
The ministry of finance declined to comment on the report on Monday, saying it was “already out and we have nothing to add to it.”
The APG report said the State Bank of Pakistan did not have a clear understanding of the money-laundering and terrorism financing risks unique to the sectors it supervised. It added that the SBP was improving its understanding and implementing a risk-based approach, including conducting regular onsite and thematic anti-money laundering and countering the financing of terrorism [AML/CFT] supervision activities.
“Some improvement in AML/CFT compliance is evident as a result of SBP’s supervision, but the value of monetary sanctions imposed is low,” the report said, adding that the Securities and Exchange Commission of Pakistan had also a limited understanding of the money-laundering and terrorism financing risks and had not implemented a risk-based supervisory approach.
Although terrorism (excluding TF) poses a significant risk to the security, economy and territorial integrity of Pakistan, the seizure and confiscation amount was nil, it pointed out.
The report said that in view of the relatively high number of investigations into money-laundering offenses, the lack of confiscation action reflected that the focus of the investigations and prosecutions was not specifically on tracing the money.
“In addition, TF [terrorism financing] confiscation amounts (approx. USD $107,000 in 5 years) needs to be improved further,” it added.
Muzamil Aslam, a senior economist, said that Pakistan could not be included in the FATF’s blacklist on the basis of the APG report as the country had shown “significant progress” on 36 out of 40 parameters of the watchdog.
“This report is a proof of our willingness to improve our legal and financial systems to meet the FATF’s demands. Therefore, it should help offset uncertainty in our capital market,” he told Arab News.
Pakistan rejects Indian claim of blacklisting by global watchdog
Pakistan rejects Indian claim of blacklisting by global watchdog
- APG report says Islamabad has shown progress on 36 out of 40 parameters set by the global watchdog
- Economists say the report proved Islamabad’s willingness to improve its financial and legal systems
Pakistan, China to sign multiple MoUs at major agriculture investment conference today
- Hundreds of Chinese and Pakistani firms to attend Islamabad event
- Conference seen as part of expanding CPEC ties into agriculture, trade
KARACHI: Islamabad and Beijing are set to sign multiple memorandums of understanding (MoUs) to boost agricultural investment and cooperation at a major conference taking place in the capital today, Monday, with hundreds of Chinese and Pakistani companies expected to participate.
The conference is being billed by Pakistan’s Ministry of National Food Security and Research as a platform for deepening bilateral agricultural ties and supporting broader economic engagement between the two countries.
“Multiple memorandums of understanding will be signed at the Pakistan–China Agricultural Conference,” the Ministry of National Food Security said in a statement. “115 Chinese and 165 Pakistani companies will participate.”
The conference reflects a growing emphasis on expanding Pakistan-China economic cooperation beyond the transport and energy foundations of the flagship China-Pakistan Economic Corridor (CPEC) into agriculture, industry and technology.
Under its first phase launched in 2015, CPEC, a core component of China’s Belt and Road Initiative, focused primarily on transportation infrastructure, energy generation and connectivity projects linking western China to the Arabian Sea via Pakistan. That phase included motorways, power plants and the development of the Gwadar Port in the country's southwest, aimed at helping Pakistan address chronic power shortages and enhance transport connectivity.
In recent years, both governments have formally moved toward a “CPEC 2.0” phase aimed at diversifying the corridor’s impact into areas such as special economic zones, innovation, digital cooperation and agriculture. Second-phase discussions have highlighted Pakistan’s goal of modernizing its agricultural sector, attracting Chinese technology and investment, and boosting export potential, with high-level talks taking place between planning officials and investors in Beijing.
Agri-sector cooperation has also seen practical collaboration, with joint initiatives examining technology transfer, export protocols and value-chain development, including partnerships in livestock, mechanization and horticulture.
Organizers say the Islamabad conference will bring together government policymakers, private sector investors, industry associations and multinational agribusiness firms from both nations. Discussions will center on investment opportunities, technology adoption, export expansion and building linkages with global buyers within the framework of Pakistan-China economic cooperation.
