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Editorial: Complete compliance on FATF's plan will bring multiple economic benefits for Pakistan

Dalit

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FATF won't take Pakistan off the greylist. This has nothing to do with economic reforms. All Western countries pulling FATF strings behind the scenes seek something else. As long as Pakistan doesn't comply to well-known Western demands this economic blackmail is going to continue.
 

Kabira

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FATF won't take Pakistan off the greylist. This has nothing to do with economic reforms. All Western countries pulling FATF strings behind the scenes seek something else. As long as Pakistan doesn't comply to well-known Western demands this economic blackmail is going to continue.
Oh yes lets boycott trade with USA and Europe. Why don't you go back to Pakistan to start?

Lets stick it to USA/europe and live like we are in 18th century.
 

TheSnakeEatingMarkhur

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THE decision taken by the Financial Action Task Force to keep Pakistan on the grey list until June, despite the country making significant progress on the recommended actions, has disappointed many. There are examples where other nations were taken off the list of countries under enhanced monitoring by the global watchdog although they did far less than Islamabad which worked hard to tighten its anti-terror-financing and money-laundering controls over the last two years.

Pakistan has complied with 24 out of the 27 actions suggested by the FATF. One hopes that it acts vigorously in the remaining areas to be taken off the grey list soon. The FATF announcement that Pakistan has made “significant progress” even if some “serious deficiencies” remain in the mechanisms to eliminate terror financing, and the government’s view that the country would not be put on the blacklist again, has been a ray of hope for all concerned.

At the same time, the FATF decision should jolt the authorities out of their complacency. There is no option but to work quickly and show progress on the rest of the FATF action plan. Even though doing so will not be easy for the state, it is clear that unlike previously, the world wants complete compliance with the global body’s exacting standards this time around. The FATF president’s statement that the watchdog will verify the completed actions and members of the task force would vote (to remove Pakistan from the list of countries on the grey list) “as soon as they improve their investigations and prosecutions of all groups and entities financing terrorists and their associates and show [that] penalties by courts are effective” underlines this new reality.

It goes without saying that complete compliance will bring its own dividends for the economy. The increasing inflow of remittances through legal channels is only one of the many economic benefits that Pakistan stands to reap from adopting global standards on illicit financing.

Last but not the least, the battle to stay out of the grey list in future will not end once Pakistan is taken off it. There is bound to be a tough struggle for a much longer time until the world learns to look upon this country as a responsible and trustworthy partner in the international fight against terrorism. The end of the endeavour to get off this list is in sight and the country must leave no stone unturned to reach its goal.

Published in Dawn, February 28th, 2021

With such challenges new solutions will be found out too we have to stop money laundering and possible terror financing in Pakistan but who is to say Kashmiri freedom fighters will stop by this ? Or it will help india get rid of em ? Their struggle will always he there untill indian side doesnt engage them politically... and that would bot be possible with current faccist govt
 

PakPrinciples

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What is FATF? Basically US/Europe who are our biggest trading partners, especially exports/remittances. Dont want to trade with them and rather host bunch terrorists who are good for nothing? Fine. I doubt they care about losing 0.1% their trade but hopefully establishment do care about losing our biggest export markets.
FATF doesn't regulate trade the WTO does.

Why you see the kind of sanctions you do on countries like North Korea and Iran is because they're not members of the WTO so they can't take anything to arbitration if restrictions are imposed.

That's why, despite an ongoing genocide, neither the US or EU have imposed anything but targeted sanctions on the civilian and military leadership of Myanmar because it is a WTO state and imposing anything more would likely violate WTO rules.

For the US/EU to impose any kind of restrictions on us it would likely only be able to do so under Article XXI of the GATT but how would they justify it under the security exemptions considering we have no UNSC sanctions imposed on us and likely never will thanks to ally China having veto status.

My personal view is that Pakistan would have always remained on the grey list irregardless of what we chose to do.

The ONLY reason I can think that this is being done because Khan and the PTI government wants to borrow more money from the WB and IMF and no nation is given the right to access foreign financial AID under the WTO nor are any WTO members obligated to offer financial AID.

You are totally free to have any sort of financial rules in your country. The rest of the world has total freedom to make their remittances to you difficult or easy.
No, WTO arbitration would likely quash any attempts to do so.

I believe this is regulated through GATS (General Agreement on Trade in Services) but do you know where it states member states can impose the blocks you're referring to?

Do you know where all of Pakistan's major rivers originate and flow through?
In terms of water I recall reading that something like 75% of our water originates from rainfall and glacial melt occurring inside our borders and the other 25% is originates from Afghanistan and China's Tibetan Plateaus that pass through occupied Kashmir.

So what of it?

It's heart wrenching witnessing a nuclear power of 200 million + turned into a poodle to maintain lifestyle of some.
it will be used to force submission in all forms
It's very unfortunate but we have to deal with the situation at hand.

We need to understand why our economy has been left in the shape it is in and the neo-liberal economic policies of the previous Musharraf dictatorship and civilian governments of Nawaz Sharif and Zardari/Bhutto are to blame.

They should face serious repercussions for their crimes and we need to push the Khan/PTI government to end this BS social welfare nonsense and focus on tax collection and investment in local industry particularly with the goal of substituting imports we buy enough of to produce locally on a competitive market of scale (ex. p-xylene, oil/gas with local thar lignite, etc...).

Oh yes lets boycott trade with USA and Europe. Why don't you go back to Pakistan to start?
This is an interesting point you've brought up.

I've mentioned this before but Pakistan doesn't need international trade to achieve substantial growth. Investment in our local agricultural sector, mining and infrastructure is more than enough to achieve above 12% yoy GDP growth for the next decade.

Even things like oil and gas can be substituted with local shale and thar lignite (both the Germans during WWII and South Africa under apartheid did so successfully).

However, Pakistan won't achieve that independence without tax revenue generation and investment in local industries.

Pakistan's current predicament is solely related to horrible economic policies of previous military dictatorships and civilian governments particularly since the 90s. The horrendous neo-liberal economic policies of Nawaz Sharif later expanded on by Musharraf while Zardari refused to reverse course as is the case with Khan and the PTI is why Pakistan isn't going anywhere.
 

Kabira

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FATF doesn't regulate trade the WTO does.

Why you see the kind of sanctions you do on countries like North Korea and Iran is because they're not members of the WTO so they can't take anything to arbitration if restrictions are imposed.

That's why, despite an ongoing genocide, neither the US or EU have imposed anything but targeted sanctions on the civilian and military leadership of Myanmar because it is a WTO state and imposing anything more would likely violate WTO rules.

For the US/EU to impose any kind of restrictions on us it would likely only be able to do so under Article XXI of the GATT but how would they justify it under the security exemptions considering we have no UNSC sanctions imposed on us and likely never will thanks to ally China having veto status.

My personal view is that Pakistan would have always remained on the grey list irregardless of what we chose to do.

The ONLY reason I can think that this is being done because Khan and the PTI government wants to borrow more money from the WB and IMF and no nation is given the right to access foreign financial AID under the WTO nor are any WTO members obligated to offer financial AID.



No, WTO arbitration would likely quash any attempts to do so.

I believe this is regulated through GATS (General Agreement on Trade in Services) but do you know where it states member states can impose the blocks you're referring to?



In terms of water I recall reading that something like 75% of our water originates from rainfall and glacial melt occurring inside our borders and the other 25% is originates from Afghanistan and China's Tibetan Plateaus that pass through occupied Kashmir.

So what of it?





It's very unfortunate but we have to deal with the situation at hand.

We need to understand why our economy has been left in the shape it is in and the neo-liberal economic policies of the previous Musharraf dictatorship and civilian governments of Nawaz Sharif and Zardari/Bhutto are to blame.

They should face serious repercussions for their crimes and we need to push the Khan/PTI government to end this BS social welfare nonsense and focus on tax collection and investment in local industry particularly with the goal of substituting imports we buy enough of to produce locally on a competitive market of scale (ex. p-xylene, oil/gas with local thar lignite, etc...).



This is an interesting point you've brought up.

I've mentioned this before but Pakistan doesn't need international trade to achieve substantial growth. Investment in our local agricultural sector, mining and infrastructure is more than enough to achieve above 12% yoy GDP growth for the next decade.

Even things like oil and gas can be substituted with local shale and thar lignite (both the Germans during WWII and South Africa under apartheid did so successfully).

However, Pakistan won't achieve that independence without tax revenue generation and investment in local industries.

Pakistan's current predicament is solely related to horrible economic policies of previous military dictatorships and civilian governments particularly since the 90s. The horrendous neo-liberal economic policies of Nawaz Sharif later expanded on by Musharraf while Zardari refused to reverse course as is the case with Khan and the PTI is why Pakistan isn't going anywhere.
First of all if you blame civilian leadership then you don't know who rule Pakistan. Musharraf ruled for 9 years between 1999 and 2008 and had same policies or even worse. Next I don't know where to begin. For one Europe can remove GSP plus facility and Pakistan exports will plummet. And no Pakistan isn't going to grow at 12% without foreign trade. China have more internal resources and their growth model was based on exports.
 

KhanBaba2

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No, WTO arbitration would likely quash any attempts to do so.

I believe this is regulated through GATS (General Agreement on Trade in Services) but do you know where it states member states can impose the blocks you're referring to?
Countries can tell their banks to do due diligence before sending money to countries where financial standards are not up to the mark. Due diligence takes time and will delay payment.
 

Vanamali

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which India violates.
Show one incident of violation.... It is most generous agreement between two water sharing nations... Just don't go by propaganda...
With such challenges new solutions will be found out too we have to stop money laundering and possible terror financing in Pakistan but who is to say Kashmiri freedom fighters will stop by this ? Or it will help india get rid of em ? Their struggle will always he there untill indian side doesnt engage them politically... and that would bot be possible with current faccist govt
Indian side, Kashmiris are involving politically... They choose their leaders and they rule themselves but within Constitution of India framework...
Personally I feel confirming to fatf will lead to transparency and economy will move towards digitalization which will result in increased tax collection and improved revenue to Govt.,
 
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