• Friday, November 22, 2019

FATF- Possible Impact on Pakistan Economy after added in grey list

Discussion in 'Strategic & Foreign Affairs' started by Rajesh Singh, Jun 28, 2018.

  1. Rajesh Singh

    Rajesh Singh BANNED

    Messages:
    385
    Joined:
    May 20, 2018
    Ratings:
    +0 / 243 / -1
    Country:
    India
    Location:
    India
    I am not economist but if I starting figure out Possible impact on Pakistan as added in grey List..

    Possibilities Are :-
    1. The Financial Sector - Standard Charted, Citi Bank and Deutsche banks's might decide to pull out.

    2. A decline in foreign transactions and foreign currency flows could lead to further Welding of Pakistan's already large current account deficit.

    3. It will make harder fro foreign investors and companies to business in Pakistan.

    4. Getting fund from international market would be more tougher for Pakistan.

    5. Pakistan would be made to go thru the extra scrutiny which can hurt the economy very badly.

    6. Pakistan's image takes a hit: The decision to put Pakistan back on the list will translate into a "major setback for Islamabad's efforts to improve its image", according to Dawn

    7. Higher cost of international transactions: FATF, which maintains grey and black lists for identifying countries that have weak measures to counter and combat money laundering and terror financing, does not have the authority or power to impose sanctions on a country found non-compliant with the required standards. But a country's listing can have an impact on its international transactions, as it would come under greater scrutiny.

    8) Higher cost of doing business: Analysts fear that punitive action could be taken against Pakistan if it is found to be complicit in terror financing. Such an action could jack up the cost of doing international and domestic business.

    9) It can hurt Pakistan's economy 'very badly': Pakistani officials and Western diplomats have told news agencies that being included in the FATF watchlist could deal a blow to Pakistan's economy as it would make it harder for foreign investors and companies to do business in the South Asian nation. "If you're put on a terror watchlist, you're made to go through all the (extra) scrutiny," Pakistan's former counter-terrorism chief, Khawaja Khalid Farooq, told Reuters. "It can hurt the economy very badly," he added.

    10) Borrowing gets costlier: Officials fear that after being put on the FATF monitoring list, it would be harder and more expensive for Pakistan to borrow money from international debt markets, news agencies have reported.

    A Pakistani finance ministry source told Reuters that the government also feared a downgrade by global credit ratings agencies, making it harder or more expensive for Pakistan to raise debt from the international markets. "It reduces our credibility in the world, which is unfair," Pakistan's State Minister for Finance, Rana Afzal, was quoted as saying.


    11) Entry into grey list snaps global banking links: Pakistan being placed back on the global terrorist financing watchlist could endanger its handful of remaining banking links to the outside world, causing real financial pain to the economy, another agency report said.

    12) 'Definitely not good' for Pakistan: There are concerns, according to agency reports, that Pakistan's nearly $300-billion-strong economy, which has been expanding at its fastest rate in a decade, at above five per cent, could lose steam after the country ends up being placed back on the FATF watchlist. Pakistan was removed from it in 2015 after three years.

    "We don't think the consequences are going to be drastic but it's definitely not good," one senior finance ministry official was quoted as saying earlier.

    13) Foreign banks will hesitate in dealing with Pakistani counterparts: Speaking to Reuters, Mike Casey, a partner at London law firm Kirkland & Ellis, said that being put back on the grey list would heighten Pakistan's risk profile. Casey added that as a consequence, some financial institutions would be wary of transacting with Pakistani banks and counterparties. "Others might elect to avoid Pakistan altogether, viewing the legal risks associated with doing business there to outweigh any economic benefits," he said.

    14) Pakistan's current account deficit could widen: In perhaps one of the biggest impacts, a decline in foreign transactions and foreign currency inflows could lead to further widening of Pakistan's already large current account deficit (CAD). For the country, its CAD has proved to be the Achilles heel; its economy had to be bailed out by the International Monetary Fund (IMF) in 2013 after a balance-of-payments crisis.
     
    • Thanks Thanks x 2
  2. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    haye haye !!
     
  3. Rajesh Singh

    Rajesh Singh BANNED

    Messages:
    385
    Joined:
    May 20, 2018
    Ratings:
    +0 / 243 / -1
    Country:
    India
    Location:
    India
    Hello Hello...
     
  4. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    So when is India giving back the 5 billion dollar aid Pakistan gave you in the last 5 years
     
    • Thanks Thanks x 1
  5. Rajesh Singh

    Rajesh Singh BANNED

    Messages:
    385
    Joined:
    May 20, 2018
    Ratings:
    +0 / 243 / -1
    Country:
    India
    Location:
    India
    Wow..... Breaking news.... Could you please post new thread on this with reliable proof .... looks like a very very interesting topic.
     
  6. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    World Bank did i believe. I believe our baniyas are trying to get it back with interest too.
     
  7. hazzam

    hazzam BANNED

    Messages:
    1,135
    Joined:
    Apr 25, 2018
    Ratings:
    +0 / 275 / -3
    Country:
    India
    Location:
    India
    achha wo wala 5 billion ? :D
    jo pakistan ne india bheja tha ? abhi tak wapis nahi kia ?
     
  8. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    Money has been laundered to India from Pakistan.

    Now if you really believe in FATF Terrorism theory. Pakistan has 5 billion investment inside India. So either you are a safe haven for terrorism or you have zero concept of how the list works.

    Actually economic terrorism is listed in IMAFT charter so you need to just be a bit careful. Dont bite the hand that feeds you as they say.
     
  9. Rajesh Singh

    Rajesh Singh BANNED

    Messages:
    385
    Joined:
    May 20, 2018
    Ratings:
    +0 / 243 / -1
    Country:
    India
    Location:
    India
    Really, then it's a very serious matter because it might went to Gilani, SEparatist's and paid terrorists pocket's in our Kashmir... Kindly provide the proof.... Our SBI should do investigation on this..Thanks:close_tema::rap:
     
    • Thanks Thanks x 2
  10. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    You think your agency does not know? It has its uses too and not just writing books.
     
  11. mohammad45

    mohammad45 SENIOR MEMBER

    Messages:
    5,064
    Joined:
    Oct 2, 2015
    Ratings:
    +1 / 6,563 / -2
    Country:
    Iran, Islamic Republic Of
    Location:
    Iran, Islamic Republic Of
    Pakistan should finish the gas pipeline project on the borders with Iran, we can dodge US sanctions together.

    We have sold gas to Turkey, why not Pakistan?!

    US has nothing to offer, considering the rift with its economical partners. American bully can never be beneficial to anyone

    None of Iran's oil costumers followed US orders, a sign of US weaknesses in world scale, so FATF can be easily dodged with suitable manners
     
    • Thanks Thanks x 5
  12. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    I am sorry.
     
  13. mohammad45

    mohammad45 SENIOR MEMBER

    Messages:
    5,064
    Joined:
    Oct 2, 2015
    Ratings:
    +1 / 6,563 / -2
    Country:
    Iran, Islamic Republic Of
    Location:
    Iran, Islamic Republic Of
    Oh, hey Sidd
    Your kind is a curse to Pakistani nation.
     
    • Thanks Thanks x 1
  14. Retired Troll

    Retired Troll BANNED

    Messages:
    42,129
    Joined:
    Apr 5, 2017
    Ratings:
    +18 / 36,675 / -11
    Country:
    Pakistan
    Location:
    Canada
    They know too hahaha
     
    • Thanks Thanks x 1
  15. Samlee

    Samlee SENIOR MEMBER

    Messages:
    4,730
    Joined:
    Aug 8, 2010
    Ratings:
    +7 / 5,953 / -0
    Country:
    Pakistan
    Location:
    Pakistan

    For Starters Pakistan Should Close The Supply Lines And Karachi Port That Is The Biggest Step They Can Take.
     
    • Thanks Thanks x 2