Abdul Najeeb
In June 2018, Pakistan was placed on the Grey List for the third time by Financial Action Task Force for non-compliance with instructions and because of deficiencies of a variety of natures such as money laundering, terror financing, and other threats to global financial networks.Though Pakistan’s political fraternity expressed grave concerns over the decision of the watchdog, at a later stage it proved to be beneficial to improve prevalent structural issues and checks. Pakistan was provided sufficient recommendations and action plans with a maximum of 27 action items by the watchdog for strict compliance to ensure that tangible measures are taken to control channels of money laundering, terror financing, and a myriad of associated risks. Pakistan steered a course and improved due diligence in banking and foreign exchange companies, and trade-related matters, and worked on grey areas of the entire payment system. Further, the following steps were taken such as but not limited to reporting mechanisms of suspicious transactions like STR, increasing the active role of the Financial Monitoring Unit, formulation of new laws and amendments therein to cater the modern needs in line with FATF guidelines, and creating a framework for managing risks of trade-based money laundering and terrorist financing by SBP.On one side Pakistan got a chance to correct its monitoring mechanism, on the other side as per several independent advisory firms Pakistan has suffered billions of dollars due to the decline of investors’ confidence in Pakistan’s market during the period of being on the grey list, as it was perceived in the market that the country might face a blow in the shape of placing on the blacklist, if not in terms of technical ground but it was expected on political ground, and shift of foreign policy. In the wake of all tough times, it is a positive development for Pakistan’s economy after a series of ups and downs that finally Pakistan is off the grey list, which would certainly help Pakistan to get back confidence from investors, international creditors, international rating agencies, and other opinion makers firms. It is mainly assumed that the local markets are running on sentiments and expectations. Such positive developments may likely to further boost economic energy, attract record Foreign Direct Investment, generate new jobs in the market, elevate positive economic numbers, provide relief to locals, stability of exchange rate, reduction in inflation, and build positive vibes across the country. As a result, the suffering of ordinary men will go down to a greater level.
