KARACHI: Citibank Pakistan has expressed its confidence that the country would not be further downgraded by the Financial Action Task Force (FATF) on the back of progress it has shown.
“Blacklisting (of Pakistan) is not probability now or any other time,” Nadeem Lodhi, CEO of Citibank Pakistan told journalists at Pakistan Media Roundtable held in Karachi on Monday.
“Pakistan is making tremendous strides on the list provided by FATF and our regulator is very strong and they have made whatever they have to implement in the financial industry,” he added.
Citibank, which operates in 98 countries and acts as a correspondent bank in Pakistan offering services to corporate and public sector clients – making payments around $4 trillion per day to other banks – says its operations have not been impacted by the greylisting of the country.
“We as a correspondent bank operate on the same alert level (as before greylisting) and it is unchanged for us and business is not impacted or that the business of our client including financial institutions is not impacted,” said Moiz Hussain Ali, Citibank Pakistan country treasury and markets head, explaining that the greylisting of Pakistan is “more of a geopolitical issue.”
“When Afghanistan is on the white list how can Pakistan be on the grey or black list?” Ali added.
In October, the Paris-based FATF expressed concerns with regard to “overall lack of progress” by Pakistan in addressing its terror financing risks, and gave Islamabad time until February 2020 to complete its full action plan or risk further downgrading.
“Should significant and sustainable progress not be made across the full range of its action plan by the next plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdictions to advise their FIs (financial institutions) to give special attention to business relations and transactions with Pakistan,” the FATF warned.
Citibank officials say Pakistan may remain on the greylist till the end of the upcoming year.
“The list given to Pakistan is quite long and it is not that you can do it overnight,” Ali said.
He expressed satisfaction with the government’s current economic policies and called for their continuation.
According to the Citibank officials, if the current political regime, where the army and political leadership look united, continues for the next two years, things should improve.
They said a number of multinational companies are planning to invest at least $500 million each in various sectors of the economy, ranging from consumer goods to energy.
FATF blacklisting unlikely for Pakistan making tremendous strides - Citibank CEO
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FATF blacklisting unlikely for Pakistan making tremendous strides - Citibank CEO
- Blacklisting is not likely, Pakistan has made great strides, says Nadeem Lodhi
- Greylisting of Pakistan is a geopolitical issue, according to Citibank
Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure
- Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
- Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone
KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.
The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said.
The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim.
“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said.
Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.
The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs.
Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said.
“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said.
The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital.
To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.
