KARACHI: Pakistan has reiterated its commitment to fully comply with the recommendation of the Financial Action Task Force (FATF) by February 2020 to avoid the country’s blacklisting. However, experts doubt the capacity of relevant institutions to overcome the deficiencies needed to improve implementation in such a short time.
Pakistan managed to retain its place in FATF's grey list after the review in Paris last week, but the global watchdog explicitly warned Islamabad to curb terrorist financing or face blacklisting.
Islamabad has until February 2020 to fully implement the given action plan.
“Pakistan agreed to national action plan to fix serious weakness in anti-monetary laundering and terrorist financing framework. Despite high level commitment to fix these weaknesses Pakistan has not made enough progress. Pakistan needs to do more and it needs to do it faster,” Xiangmin Liu, president of the FATF, said at a press conference in Paris on Friday.
Liu warned that Pakistan would be placed in blacklist if swift actions are not taken. “FATF is giving this very clear warning…. if by February 2020 the country has not made significant progress we would consider further actions.”
Pakistan has reiterated its commitment to fully implement action plan to counter money laundering and terror financing within the given timeframe.
“On this issue government’s all institutions are on the same page. All institutions are committed to fight money laundering and terrorist financing,” Dr Abdul Hafeez Shaikh, adviser to the prime minister on finance and revenue, who is currently visiting the United States told journalists in Washington on Sunday.
According to the FATF Technical Compliance Index, out of a total of 40 recommendations, Pakistan was fully compliant with only one, largely compliant with nine, partially compliant with 26 and non-compliant with four recommendations.
“I think Pakistan will be able to meet its target if proper efforts are made because it is largely compliant in most categories and non-compliant in only four,” Dr Salman Shah, former finance minister, told Arab News.
However, experts believe the targets were hard to meet within a span of four months as the implementing institutions lacked capacity.
“In my personal view, this work cannot be done in four months. Technical institutions involved here need capacity building with requisite technical advice. The banking and surveillance institutions involved lack capacity. Efforts are needed to improve their capacity,” said Dr Vaqar Ahmed, joint executive director of Islamabad based Sustainable Development Policy Institute (SDPI).
He suggested that FATF and Asia Pacific Group (APG) should first provide the technical training and know-how to Pakistani institutions and then demand implementation inline with the training provided.
Many Pakistani experts also believe that the country is on the right track and maltransactions have reduced significantly. “It's hard to say if Pakistan can achieve targets for sure. But we are on the right track. The reported maltransactions have reduced significantly since the past year. But we have to be very vigilant to meet the February deadline because the repercussions are enormous”, said Komal Shakeel, Economic Policy Consultant at the Asian Development Bank (ADB).
Shakeek said that “in the context of slowed growth predicted by major international agencies and the dire need for Pakistan to expand export led growth, this [blacklisting] will be a huge blow to Pakistan's trade. Foreign exchange reserves may suffer greatly, and a blow to GDP growth may eventually lead to stagflation.”
To avoid further downgradation in February next year, Dr Ahmed suggests expedited diplomatic efforts to complement the implementation of the action plan. “Malaysia, Turkey, Saudi Arabia and China can play a big role in further relaxation in February 2020. We need to actively engage ourselves diplomatically with these four countries,” he said.
Pakistan assures to fully implement FATF action plan by February
Pakistan assures to fully implement FATF action plan by February
- Global watchdog warned Pakistan would be placed in blacklist if swift actions were not taken
- Experts doubt the capacity of Pakistan's implementation institutions to overcome deficiencies in such a short time
President Biden’s first contact with PM Sharif signals support amid regional challenges
- Biden’s letter is the first top-level contact between the two countries in a long time, signifying a thaw in their frosty ties
- The US president describes the partnership between the two countries’ people as ‘crucial for global and local security’
ISLAMABAD: In the first top-level contact between the United States and Pakistan in a long time, President Joe Biden assured Prime Minister Shehbaz Sharif on Friday of his administration’s full support in addressing the critical challenges facing the region.
Biden’s letter to Sharif signifies a thaw in the frosty US-Pakistan relations following the strained ties during the withdrawal of international forces from Afghanistan and the subsequent allegations by Pakistan’s former premier Imran Khan of a US conspiracy against his administration.
The US president’s outreach marks a notable shift from the previously perceived indifference, evident in the absence of direct communication with Khan’s government.
The correspondence underscores a potential recalibration of bilateral relations, with the US president describing the partnership between the two countries’ people as “crucial for global and local security.”
“The US will stand with Pakistan in facing the most critical challenges of the time and region,” Biden was quoted as saying in an official statement released by the Pakistani authorities. “Public health protection, economic growth and education for all are shared visions that will continue to be promoted together.”
The US president also highlighted various areas where the two countries have been working together while promising to strengthen their joint efforts.
He specifically mentioned the US-Pakistan Green Alliance Framework, saying his administration would continue to work with Pakistan for environmental improvement.
Biden also spoke of sustainable agricultural development, water management and recovery from the devastating effects of the 2022 floods in Pakistan.
He also expressed dedication to protecting human rights and promoting development together with Pakistan amid previous US concerns over freedom of speech and expression in the wake of period social media disruptions in the South Asian country.
“The strong partnership established between the two nations will be strengthened,” he said in the letter.
Pakistan’s finance minister eyes fresh IMF loan deal by fiscal year-end
- Muhammad Aurangzeb plans to discuss the contours of the new loan program during his meetings in Washington
- Pakistan has successfully completed the second and final review under a short-term IMF agreement for $1.1 billion
ISLAMABAD: Pakistan plans to reach a staff-level agreement with the International Monetary Fund (IMF) for a new loan program by the end of the current fiscal year, said finance minister Muhammad Aurangzeb on Friday, adding the issue would come up for discussion in his upcoming meetings in Washington.
Pakistan successfully completed the second and final review under a short-term IMF stand-by arrangement amounting to $3 billion earlier this month, clearing the way for the disbursement of the final tranche of nearly $1.1 billion.
However, the country’s fragile $350-billion economy continues to be in desperate need for external financing to shore up its foreign exchange reserves and escape yet another macroeconomic crisis. This was also indicated by Prime Minister Shehbaz Sharif who pointed out it was “inevitable” for his government to seek further IMF assistance after taking over the top political office of his country.
The Pakistani finance minister said he was going to attend the spring meetings in Washington where he would meet the IMF and World Bank officials and discuss the contours of a fresh Extended Fund Facility (EFF).
“Those discussions will go into end April, into May,” he informed. “We can expect, because no final discussion or agreement [with IMF] has taken place yet, but it is our desire that by the time we wrap up this fiscal year, so end June, early July, we at least reach the staff-level agreement [for the EFF].”
Committing to a new IMF program will require Pakistan to implement steps needed to stay on a narrow path to recovery. The country has already tried to implement stringent economic reforms like raising fuel and power rates that have led to spiraling inflation in the country.
Getting into another IMF program would further limit the government’s policy options to provide relief to a deeply frustrated population and cater to industries that are looking for government support to spur growth.
PCB meets to discuss national team captaincy amid reports of Babar Azam comeback
- Meeting takes place amid widespread speculation Babar could take over as Pakistan captain for upcoming T20 series against New Zealand
- Babar stepped down as all-format captain last November following the team’s failure to reach ICC Men’s World Cup semifinals with five defeats
KARACHI: The chairman of the Pakistan Cricket Board (PCB) met the body’s selection committee and other key officials to discuss the national team’s captaincy, the PCB said on Friday, amid reports former all-format captain Babar Azam’s name was under consideration for the position.
PCB Chairman Mohsin Naqvi chaired the meeting at the PCB headquarters in the eastern city of Lahore, according to the cricket board.
PCB Chief Operating Officer Salman Naseer, Selection Committee members Muhammad Yusuf, Wahab Riaz, Abdul Razzaq and Bilal Afzal, and PCB International Cricket Director Usman Wahla attended the conference.
“The members of the selection committee made recommendations to Chairman PCB Mohsin Naqvi about the captain of the national cricket team,” the PCB said in a statement.
“Coaches were also consulted at the meeting.”
Local media has widely speculated this week that Babar could make a comeback as Pakistan captain in the upcoming five-match T20 series against New Zealand.
The series is scheduled to be played in Rawalpindi on April 18, 20 and 21 and in Lahore on April 25 and 27.
The PCB, under former chief Zaka Ashraf, had appointed Shaheen Shah Afridi as Pakistan captain for the limited-over format after the national team’s poor show at the 2023 ICC Men’s Cricket World Cup in India. Shan Masood was given the Test captaincy at the time.
In November last year, Babar announced he was stepping down as all-format captain following the team’s failure to reach the World Cup semifinals with five defeats — including a seven-wicket mauling by India in front of more than 100,000 fans — and four wins. The team also lost to Afghanistan for the first time.
Babar was particularly under fire for the poor show of a team that was ranked as the world’s top ODI side before the tournament.
This was the fifth time in the last six World Cups that Pakistan failed to reach the semifinals.
Babar was appointed T20I and ODI captain in 2019 before eventually captaining the Test side since 2020.
Pakistan briefs Chinese investigation team on security measures after deadly suicide bombing
- Five Chinese nationals were killed on Tuesday in northwestern Pakistan when a suicide bomber targeted their vehicle
- Pakistan has since then enhanced security for Chinese personnel in the country, vowed to punish culprits of the attack
ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Friday briefed a Chinese investigation team on a suicide attack in Pakistan’s Shangla, which killed five Chinese nationals this week, promising to bring to justice the perpetrators of the deadly bombing.
Five Chinese nationals and their Pakistani driver were killed on Tuesday in the northwestern Pakistani district of Shangla, when a bomber rammed his explosive-laden car into their vehicle.
The victims were en route to a hydropower project when the attack occurred in an area vital to the Chine-Pakistan Economic Corridor (CPEC), part of Beijing Belt and Road Initiative (BRI).
Naqvi visited the Chinese embassy in Islamabad to brief the special investigation team that arrived from China, according to the Pakistani interior ministry.
“In the meeting, measures for the protection of Chinese citizens and overall security were discussed,” Naqvi’s ministry said in a statement. “The real culprits of the Shangla attack will be brought to justice,” the statement quoted the minister as saying.
Naqvi also met the Chinese ambassador and shared with him updates regarding the attack, according to the statement.
Tuesday’s attack came less than a week after Pakistani security forces killed eight Balochistan Liberation Army (BLA) separatists, who opened fire on a convoy carrying Chinese citizens outside the Chinese-funded Gwadar port in the volatile southwestern Balochistan province.
Hundreds of Chinese engineers and technicians have been working on projects, primarily in Pakistan’s northwest and southwest, under CPEC — a network of roads, railways, pipelines and ports in Pakistan that will connect China to the Arabian Sea and help Islamabad expand and modernize its economy.
Beijing has pledged to invest over $65 billion in energy and infrastructure projects in Pakistan as part of the corridor.
The interior minister’s meeting with the Chinese team came a day after Chinese foreign ministry spokesperson Lin Jian said his government believed Islamabad would hold accountable the perpetrators of the deadly attack.
“The Pakistani side is working intensively to investigate and handle the aftermath and has taken concrete steps to enhance security for Chinese personnel, projects and institutions,” Lin told reporters during a press briefing.
“We believe Pakistan will get to the bottom of the attack and bring the perpetrators to justice as soon as possible.”
In a first, foreign minister replaces finance chief in Pakistan’s largest decision-making body
- The CCI decides matters like distribution of natural resources upon which there is disagreement between center, provinces
- Members of the council include four provincial chief ministers as well as foreign, defense and frontier regions ministers
ISLAMABAD: The Pakistani government this week constituted the Council of Common Interests (CCI), with the foreign minister replacing the finance chief in the decision-making body.
The CCI is a constitutional body and its members are appointed by the president on the advice of the prime minister. The council resolves power-sharing and other disputes between the federation and the provinces.
Members of the council include four provincial chief ministers, Foreign Minister Ishaq Dar, Defense Minister Khawaja Asif, and State and Frontier Regions Minister Ameer Muqam, according to a government notification.
“In exercise of the powers conferred under Article 153 of the Constitution of Islamic Republic of Pakistan, the president, on the advice of the prime minister, has constituted the Council of Common Interests, with effect from 21st March,” read the notification dated March 25.
“This supersedes Secretariat of CCI’s notification of even number, dated 9th January.”
The CCI is the largest decision-making body in the country that decides matters like the distribution of natural resources, upon which there is a disagreement between the center and provinces.
The top forum is headed by the prime minister.