Home Global Village Pakistan to be placed on FATF’s grey list in June: Confirms FO

Pakistan to be placed on FATF’s grey list in June: Confirms FO

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Pakistan’s Foreign Office (FO) Spokesperson Dr. Muhammad Faisal told media personnel during a press conference on Wednesday that Pakistan is to be placed on the Financial Action Task Force (FATF) grey-list in June this year. “Pakistan will be assigned to the ‘grey-list’ in June, once an Action Plan has been mutually negotiated,” said the FO spokesperson. 

He, however, made it clear that Pakistan was not going to be put on the black-list. “The FATF website clearly demarcates the countries in ‘black’ list, as those who are non-cooperative,” said the spokesperson. While commenting on Pakistan’s counter-terrorism strategies; the FO spokesperson explained that the government in Islamabad is seriously working to eradicate the menace of terrorism.

Some analysts in Pakistan think that being put on the grey-list will damage Pakistan’s economy as the move will make it harder for the foreign investors and companies to work in Pakistan.  Pakistan is also facing challenges posed by the US and India in Afghanistan as well.

“The government of Pakistan, over the last few years, has taken numerous steps to address these issues, including through enactment of legislation, issuance of regulations and guidelines by SBP and SECP to the financial sector, establishment of the Financial Monitoring Unit and implementation of UNSC 1267 sanctions on the entities of concern (JuD/FIF),” he said. “We will take further steps to address any remaining shortcomings,” added Faisal.

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USA Lobbying against Pakistan?

Media reports suggest that the USA is lobbying against Pakistan and is trying to put its name on the grey-list with the help of India. Analysts’ opined that the US intends to put pressure on Pakistan to get desired ends in Afghanistan. The US President Donald Trump has already criticized Islamabad for not initiating a crackdown against the Haqqani Network. He also held Pakistan responsible for the US failure in Afghan war.

Pakistan has not only rejected these allegations but also urged the US to admit what went wrong with its strategies in Afghanistan and beyond. However, some US officials recognize Pakistan’s role in war against terrorism. FO spokesperson reminded the reporters that “General Votel appreciated the positive indicators from Pakistan. Islamabad has made immense efforts to address issues related to counter-terrorism. We continue to ask the US for actionable evidence,” he further ensured.

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Pakistan’s Concerns over the Move

Pakistan has serious reservation over the move to place it on the Financial Action Task Force (FATF) grey-list. Muhammad Faisal had mentioned that a request to include Pakistan in the grey-list was made earlier in January by the United States and Britain. “Pakistan has serious concerns over the motion moved by US and UK at the Financial Action Task Force to put the country on the grey list,” he stated.

Some analysts in Pakistan think that being put on the grey-list will damage Pakistan’s economy as the move will make it harder for the foreign investors and companies to work in Pakistan.  Pakistan is also facing challenges posed by the US and India in Afghanistan as well.

Media reports suggest that the USA is lobbying against Pakistan and is trying to put its name on the grey-list with the help of India. Analysts’ opined that the US intends to put pressure on Pakistan to get desired ends in Afghanistan.

Political commentator Lt Gen Talat Masood (retd) told the Arab News that “this time (the effects) would be even greater because there are other pressures on Pakistan,” speculating on what might happen should Pakistan be included on the watch list again. “Pakistan’s balance-of-payments position is very adverse at the moment and internal stability is not good. It will have a greater impact than it had last time,” 

Read more: The real reasons why Pakistan was put on the FATF ‘grey…

But contrary to what the media reports and political commentators are suggesting, adviser to the Prime Minister on Finance, Miftah Ismail clarified that Pakistan is not going to be significantly affected by being put on the list as fundamentals of the economy were strong. “Nothing is going to happen before June…[but even then] nothing really will happen to Pakistan. It is not a big issue,” he explained.

The adviser also mentioned that Pakistan was placed on the list between 2012 and 2015 too, but the stock market still grew by three per cent.


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