Pakistan’s removal from the grey list of Financial Action Task Force (FATF) will smoothen foreign direct investment and give much-needed boost to country’s fragile economy. Talking to a delegation of Gold Ring Economic Forum, Co-ordinator to Federal Tax Ombudsman Meher Kashif Younis here on Saturday said it will fully restore the confidence of global and local investors as tremendous opportunities and vast investment avenues are open to all international tycoons. He said now new boom will welcome Pak exports worldwide. He said it will also give an impetus to exports as well. He “Getting off the FATF grey list is a highly technical process, but at some point, the international community needs to recognize Pakistan for the genuine steps it has taken against certain militant groups and their leaders, he added. He said Pakistan first entered the list in 2008 and exited in 2010. The country was placed again on the list from 2012 to 2015. It has been back on the ‘grey list’, also known as the “increased monitoring list”, since 2018. Pakistan had successfully completed all the 27 prescribed actions to pave way. The FATF, established in 1989, sets international standards for preventing international financial crimes that aid terrorism.

Meher Kashif Younis said this greylist designation has had a significant impact on Pakistan’s economy, particularly its financial services industry. FATF concerns had also impacted the country’s IMF program: one of the conditions in the recent $6 billion bailout was the requirement that Pakistan comply with FATF guidelines. He said Pakistan has been hit with massive losses to its GDP worth $38 billion because of the Financial Action Task Force's (FATF) decision to retain the country on its grey list since 2008, Pakistan has appeared on the FATF greylist multiple times since 2008, signaling the organization’s heightened scrutiny of money laundering and terrorism financing in the country. This greylist designation has had a significant impact on Pakistan’s economy, particularly its financial services industry. FATF concerns had also impacted the country’s IMF program: one of the conditions in the recent $6 billion bailout was the requirement that Pakistan comply with FATF guidelines.

Credit: Independent News Pakistan-INP