ISLAMABAD: The foreign office on Thursday rejected rumours circulating in Pakistani media that Saudi Arabia had tried to negatively influence Pakistan’s assessment during an ongoing meeting of the Financial Action Task Force (FATF).
The global financial watchdog is currently holding a plenary meeting to decide whether to keep or remove Pakistan from a gray list or move it to a blacklist.
In 2018 the FATF placed Pakistan on its gray list of countries with inadequate controls over terror financing, and gave it a 27-step action plan to implement. Being placed on the black list would put Pakistan in company with Iran and North Korea and see it shunned by international financial institutions.
In a statement released on Thursday, Pakistan’s Foreign Office spokesperson Zahid Hafeez Chaudhri “rejected” media reports about Saudi Arabia’s role in the assessment as “false and baseless.”
“Pakistan and Saudi Arabia enjoy strong fraternal ties and the two countries have always cooperated with each other on all matters of bilateral, regional and international importance,” the statement said. “Pakistan greatly values its relations with the brotherly Saudi Arabia and firmly rejects such malicious propaganda.”
It added: “FATF will announce its assessment of Pakistan’s progress on the Action Plan and the future course of action after conclusion of its Plenary Meeting.”
Rumours circulated on social media on Thursday that Saudi Arabia would vote against Pakistan at FATF and was urging other countries, including Turkey, to do the same.
Islamabad rejects media reports of Saudi 'role' in Pakistan's FATF assessment
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Islamabad rejects media reports of Saudi 'role' in Pakistan's FATF assessment
- Pakistan and Saudi Arabia have "always cooperated with each other on all matters," foreign office says
- Financial watchdog is currently holding a meeting to decide whether to remove Pakistan from a gray list or move it to a blacklist for inadequate terrorism financing controls
Pakistan stocks recover as oil supply fears ease after Islamabad seeks Red Sea route— analyst
- Pakistan has sought Saudi help to secure oil supplies via Red Sea port after Iran’s closure of Strait if Hormuz
- Analyst says higher crude oil prices, expectations of IMF releasing next loan tranche also triggered bullish activity
ISLAMABAD: Pakistani stocks marked a sharp recovery when trading closed on Thursday, as institutional activity increased following Islamabad’s move to seek crude oil supplies through the Red Sea port eased oil supply fears, a financial analyst said.
Pakistani stocks have recorded a sharp decline this week, with the benchmark KSE-100 index recording its largest-ever single-day decline on Monday when it plunged 16,089 points. Escalating conflict in the Middle East triggered panic selling at the Pakistani bourse, forcing a temporary trading halt on Monday.
The KSE-100 index, however, gained 3.49 percent or 5,433.46 points to close at 161,210.67 when trading ended on Thursday, up from the previous close of 155,777.21 points, according to Pakistan Stock Exchange’s (PSX) data.
Pakistan’s Petroleum Minister Ali Pervaiz Malik met Saudi Ambassador Nawaf bin Said Al-Malki on Wednesday to discuss Iran’s closure of the key Strait of Hormuz, which has threatened Pakistan’s energy supply. Roughly 20 percent of the global oil and gas supply passes through the route. Saudi Arabia indicated it could facilitate shipments through the Red Sea port of Yanbu, offering an alternative route if Gulf shipping lanes remain disrupted, the petroleum ministry said on Wednesday.
“Stocks staged a sharp recovery at PSX amid institutional activity on easing fuel supply fears after KSA [Kingdom of Saudi Arabia] commits oil supplies through the Red Sea port,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities, told Arab News.
He said higher global crude oil prices and expectations of the International Monetary Fund releasing its next tranche of the $7 billion loan for Pakistan also helped bullish activity at the PSX.
An IMF mission was in Pakistan to hold talks on the third review of a $7 billion Extended Fund Facility multi-year program, and for the second review of the $1.4 billion Resilience and Sustainability Facility this week.
However, the delegation left for Türkiye amid tensions in the Gulf. Pakistani officials have said talks are likely to continue virtually in the coming days.
Pakistani brokerage Topline Securities said in its daily market review report that strong institutional buying “turned the tide” on Thursday after the market’s recent overreaction to regional issues.
The report added that Hub Power Company (HUBC), Oil & Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), and Meezan Bank Limited (MEBL) collectively contributed 2,197 points to the KSE benchmark’s gain.
Topline Securities said 723 million shares were traded on Thursday, with K-Electric Limited (KEL) stealing the spotlight as more than 1.17 billion shares changed hands.
Pakistani investors are closely monitoring developments in the Gulf, particularly around energy routes and further retaliatory actions, as the conflict’s trajectory remains uncertain.
