KARACHI: Pakistan has made significant progress on the recommendations of the Financial Action Task Force (FATF), Dr. Reza Baqir, Pakistan’s central bank chief said on Saturday, while speaking to media at a financial crime summit in Karachi.
In October, the Paris-based terror financing watchdog, FATF, retained Pakistan on its grey-list until Feb. 2020, and warned the country could get further downgraded for failure to make progress on its 27-point action plan.
In case of an FATF black-listing, Pakistan would be heavily sanctioned which could cripple its struggling economy.
“FATF is a very important area for us and the country. We have made substantial progress in this area,” he said and added that the International Monetary Fund had also endorsed Pakistan’s progress in its report.
But with the FATF’s February deadline looming over the horizon, Pakistan faces considerable skepticism over whether announcements to crack down on money laundering and militant groups operating from its territory, have translated into real action.
The State Bank of Pakistan (SBP) governor said steps had been taken to completely eliminate trade-based money laundering and terror financing under a ‘zero tolerance policy.’
“The country has zero tolerance for terror financing. Trade based money laundering is being halted... money laundering in trade is very difficult now,” Baqir said.
“Steps are being taken to separate criminal proceedings and economic affairs through the strict monitoring of money laundering and terror financing,” he said, and added: “Pakistan’s financial system is being reformed.”
In May, with barely enough foreign exchange reserves to cover two months of exports, Pakistan reached an agreement with the IMF for a three-year, $6 billion bailout deal, as a life-line to its slowing economy. But the IMF deal came with its own set of stringent reform conditions, including the call for a market-determined, free-floating exchange rate for the rupee which led to the Pakistani currency hitting record lows against the dollar.
On Saturday, the State Bank chief defended the move and said the measures had restored the confidence of investors, attracted investment in the Pakistani rupee, encouraged savings and strengthened the foreign exchange reserve position of the country.
Foreign reserves held by the country surged to $16.04 billion during the week ending on Dec. 06, 2019 and central bank reserves increased by $121 million to $9.23 billion. The SBP also received $1.3 billion from Asian Development Bank.
The stock market has also shown positive growth as the benchmark KSE 100 index increased by 7,259 points (21.6%) during the last seven weeks-- its highest since September 2009.
Pakistan making 'substantial progress' against terror financing — SBP chief
https://arab.news/c4e9x
Pakistan making 'substantial progress' against terror financing — SBP chief
- In Oct., terror financing watchdog FATF retained Pakistan on its ‘grey-list’ until Feb. 2020
- ‘Zero tolerance policy’ for terror financing and money laundering: SBP chief
Pakistan’s PIA to resume London flights from Mar. 29 after six-year gap
- Newly privatized airline says will operate four weekly flights from Islamabad to London
- PIA is already operating three fllights per week to British city Manchester, says airline
ISLAMABAD: The newly privatized Pakistan International Airlines (PIA) will operate direct flights to London starting Mar. 29, 2026, after six years, its spokesperson confirmed on Tuesday.
The PIA resumed its flight operations to the UK in October this year with its inaugural flight to Manchester. The airline is currently operating three weekly flights to the British city.
Britain lifted restrictions on Pakistani carriers in July, nearly half a decade after grounding them following a 2020 PIA Airbus A320 crash in Karachi that killed 97 people. The disaster was followed by claims of irregularities in pilot licensing, which led to bans in the US, UK and the European Union.
“Pakistan International Airlines has announced the expansion of its operations in the United Kingdom with the resumption of flights to London,” the airline’s spokesperson said in a statement.
“Starting Mar. 29, PIA will operate four weekly flights from Islamabad to London.”
The airline said that the London flights will be operated from Heathrow Airport’s Terminal 4, which it said is recognized as one of its most modern terminals.
“London was PIA’s very first international destination and remains one of its most important and attractive routes,” the spokesperson said.
Pakistan’s government succeeded in its frequent efforts to privatize the airline this month after a consortium, led by Arif Habib Group, on Dec. 23 secured a 75 percent stake in PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).
The sale marked Pakistan’s most aggressive attempt in decades to reform the debt-ridden national airline, which had accumulated more than $2.8 billion in financial losses. The government said it would end decades of state-funded bailouts and help revive the airline.
In an exclusive interview with Arab News this week, the airline’s new owner Arif Habib said he plans to renovate PIA planes, improve maintenance and flight schedule, and bring in new aircraft to revive the carrier.
Habib said he sees the region comprising the UK, the US and Canada as a “lucrative market” for the airline’s business.
“There we can increase the frequency of the flight,” he said. “We will also try to run flights to Canada from Karachi, Lahore, and I think it’s already in Islamabad.”
