If Pakistan would have been blacklisted, the country would join the ranks of Iran and North Korea in facing isolation from the international banking system
Pakistan to remain in the grey list of the Financial Action Task Force (FATF), news agency ANI reported quoting sources.
According to reports, Turkey and Malaysia supported Pakistan and hence the Islamic Republic narrowly escaped being blacklisted by the intergovernmental organisation.
This comes after Pakistan submitted a report on action regarding the implementation of the watchdog`s plan of action during the Paris meeting. FATF on Tuesday evaluated whether the south Asian nation has taken sufficient steps and implemented its plan of action to fight the global menace.
The key plenary session of the FATF began in Paris, France, on February 16. The intergovernmental organisation, also known by its French name, Groupe d'action financière (GAFI), is investigating Pakistan on terror financing charges and will on February 21 decide whether the Islamic Republic has taken the adequate steps required to check these financing charges.
The FATF, established in 1989, investigates money laundering, terrorist financing and other related threats to the integrity of the international financial system. More than 800 representatives from 205 countries and jurisdictions around the world, including the IMF, UN, World Bank, and other organisations, took part in the FATF meeting.
According to reports, Pakistan needed about 15-16 votes to move out of the Grey List and a minimum of three votes to avoid falling into the Black List. It was convenient for the country to escape getting blacklisted because the country enjoys support from its "tactical ally" China, and other countries like Turkey and Malaysia. "We will be supporting Pakistan at the Financial Action Task Force meetings, where Pakistan is subject to political pressure," Turkish President Recep Tayyip Erdogan had told Pakistan's parliament on Saturday.
If Pakistan would have been blacklisted, the country would have joined the ranks of Iran and North Korea, who do not get funds from international financial organisations. It would have then been extremely difficult for Pakistan to manage an already crippling economy. If blacklisted, Pakistan would have to face isolation from the international banking system, introducing stricter checks and safeguards on transactions involving the country. The progress of a FATF initiative to combat financial flows from the illegal wildlife trade, adopting guidance on digital identity, and developments in the financing of ISIL, Al-Qaeda, and affiliates were some of the issues that were discussed during the meeting.
Conditions are a bit more lenient in the Grey List, however, the country's policies are still being looked at dubiously on an international level.
Whitelisted countries find it easy to get financial aid from the International Monetary Fund (IMF), the World Bank, ADB, and the European Union.
It had long been assumed that Pakistan may continue to remain in the Grey List beyond February 2020 for money laundering and terror financing due to its "risk profile". Some Indian politicians had even expressed fear that Pakistan may get off the grey list with the help of its international allies and tactical support from a few Western countries.
Veteran BJP leader Subramanian Swamy had in January asked Prime Minister Narendra Modi to look into the issue of India's falling "international stature".
Defence experts in India on February 15 had noted that the recent sentencing of Jamaat-ud-Dawa (JuD) chief Hafiz Saeed, just days ahead of the FATF meeting in Paris is just an eyewash to delude the international community and that the Mumbai terror attacks mastermind will be released shortly after the watchdog announces its decision.
In 2019, under pressure after the FATF review, Pakistan formally banned JuD and other associated organizations, after years of allowing them to operate freely across the country.
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