ISLAMABAD: Pakistan's business community on Sunday hailing the Financial Action Task Force’s (FATF) decision to remove the South Asian country from a list of countries under "increased monitoring" for money laundering and terrorism financing, hoping it would boost the ailing economy, Pakistani state media reported.
FATF, a global anti-money laundering and anti-terror financing watchdog, on Friday removed Pakistan from its list of countries with vulnerable financial systems after Islamabad successfully implemented 34 action points to counter money laundering and terror financing. Pakistan was added to the so-called 'grey list' in June 2018.
FATF said Pakistan had strengthened effectiveness of its Anti-Money Laundering and Counter-terrorism Financing (AML/CFT) regime to meet commitments regarding strategic deficiencies that FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines.
Leading Pakistani business persons believe the development would restore the confidence of international financial institutions in Pakistan, help attract foreign direct investment and promote the country's exports.
Irfan Iqbal Shaikh, president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), said the landmark success will "further cement the government’s endeavours to attain sustainable economic development."
"It will also address the liquidity issues as releases from the multilateral and other donor agencies such as IMF, ADB, WB and Paris Club would further enhance," Shaikh was quoted as saying by the state-run APP news agency.
He said Pakistan's removal from the 'grey' list would improve the “credibility and rating of the local economy that would attract foreign direct investment.”
Ahsan Zafar Bakhtawari, president of the Islamabad Chamber of Commerce and Industry, said the development would boost the confidence of international creditors and donors, including the International Monetary Fund (IMF), Asian Development Bank (ADB) and the World Bank.
"The decision would also help in promoting soft image of the country in all international forums," Bakhtawari was quoted as telling the APP. "The credit rating of Pakistan would improve as well, which will be another development signal for the economy of the country."
Pakistan had borne accumulative financial losses to the tune of $40 billion since it was placed on the 'grey' list, according to Bakhtawari. The removal from the list will help bring more export orders from abroad and bridge the widening trade deficit.
“Besides, it will also help reduce rupee-dollar parity as well as ease negotiations with the IMF and other multilateral donors and creditors,” he added.
Pakistan Hi-Tech Hybrid Seed Association's Shahzad Ali Malik said it was a good omen that FATF excluded Pakistan from its dirty money watch list.
As a result of FATF’s decision, Malik said, economic activities would accelerate and greatly help restore the confidence of investors across the globe.
