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The government has started the process for conducting a research study on "forecasting the full economic impact of potential Financial Action Task Force (FATF) blacklisting, especially in the areas of trade, investment and remittances." Sources told Business Recorder here on Tuesday that the research study would be conducted by Pakistan Institute of Development Economics (PIDE) in close collaboration and coordination with Ministry of Foreign Affairs. The FATF restrictions would be taken care by the PIDE.

The representatives of the Ministry of Commerce and Trade would assist PIDE in developing terms of reference of the study. The study would be finalised and shared by the PIDE during 45 days time period. The weekly progress would be shared by the PIDE. The Employment and Research Section of the Ministry of Planning, Development and Reform shall fully support and facilitate Ministry of Foreign Affairs and PIDE in conducting the research study.

Ministry of Finance, Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP), being the key stakeholders of the subject matter, shall apprise their take on the subject matter. Last month, a meeting was held at the Ministry of Planning on the issue of research study on "forecasting the full economic impact of potential FATF blacklisting, especially in the areas of trade, investment and remittances." During this meeting, Ministry of Foreign Affairs informed that they are currently working closely with the Ministry of Finance and other relevant departments to implement the FATF action plan and requested that the PIDE may assist their efforts by undertaking research based study on full economic impact of potential FATF blacklisting, especially in the areas of trade, investment and remittances. The modalities of the issue were discussed in detail for supporting Ministry of Foreign Affairs in undertaking the research study through PIDE.

The representative from the Ministry of Foreign Affairs highlighted that in June 2018, Pakistan made a high-level political commitment to work with the FATF and APG to strengthen the anti-money laundering and counterterrorist financing regime (AML/CFT). Pakistan also made commitment to address its strategic counterterrorist financing related deficiencies. It was also pointed out that Pakistan is already in grey list and if its credit rating falls further and it is blacklisted then remittances from aboard would decrease, besides other ills, causing serious threats to national economy.

Copyright Business Recorder, 2019


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