FATF defers decision putting Pakistan on ‘grey’ list; three months notice served
After the plenary meet of the Financial Action Task Force (FATF) that concluded last night in Paris, the decision was made to place Pakistan on the grey list till June.
Though this is said to have come with a warning, that Act or face action in 90 days.
The latest FATF list of countries on grey list of FATF includes Ethiopia, Iraq, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu and Yemen.
But reports suggest that in three months’ time, Pakistan will be put on the grey list because the challenge before Islamabad is too humongous to meet in the given time frame.
It is also said that Pakistan’s friends China and Saudi Arabia too have withdrawn their objection to the move for punitive action against it.
It need be recalled that FATF’s International Cooperation Review Group had only last year resolved at its meeting in Argentina to scrutinize Pakistan’s continued support to terror groups.
At the Paris meet, only Turkey opposed the move by the US to place Pakistan on the grey list by the FATF.
However, this is not the first time that FATF has put Pakistan on its watch list for supporting proscribed terrorist groups operating form its soil.
Earlier too, Pakistan has figured on this list for a total of three years.
The FATF is an inter-governmental body that works as a watchdog in the matters of terror financing. It has stated that Pakistan has failed to address global concerns.
Once put on the grey list, Pakistan will be put to intense scrutiny under a “Compliance Document” by FATF. Some of the commentators have described the implications of FATF action on Pakistan as near lethal.
Pakistan is facing multiple financial crises.
Its current account deficit is really bad on the account very adverse balance of payment situation. Financial stability of Pakistan is dependent on the foreign aids, grants and loans that it has been receiving for years.
Most of the Chinese money invested in Pakistan comes in the form of debt.>