Has Pakistan curbed terror financing? FATF to decide soon
What's the story
Pakistan, already having a bad reputation for encouraging terrorism in its land, is facing a testing time. The global watchdog Financial Action Task Force (FATF) will soon decide whether the actions taken by the Islamic nation in curbing terror financing have been enough or not. FATF's Plenary and Work Group meetings will begin in Paris from Monday. Will Pakistan be downgraded?
FATF
In June 2018, Pakistan was put on greylist
Currently, Pakistan figures in the greylist of FATF. In June 2018, FATF put it on the infamous list while giving a 27-point action plan to Islamabad. Performing well on these points would mean Pakistan will be removed from the greylist, and not doing so puts it under threat of being blacklisted. A downgrade will adversely affect the country's cash-strapped economy.
Report
Pakistan submitted a compliance report
An ANI report said Pakistan's Securities and Exchange Commission has submitted a compliance report. FATF will judge this report in the presence of Pakistan minister Hammad Azhar. As Pakistan has been under scrutiny for long now, the Asia Pacific Joint Group (APJG) put the nation on its Enhanced Follow-Up list in August for failing to take any concrete steps against UN-designated terrorists.
Defense
Meanwhile, Pakistan has been urging nations to give it reprieve
The report added that Pakistan has been reaching out to all nations, who are part of FATF, claiming it has made "serious progress". Pakistan said that if it is blacklisted, the country's economy will suffer, transactions and trade will be slowed, and as a result, it might have difficulty in repaying loans it took from International Monetary Fund (IMF).
Possibility
A think-tank hinted Pakistan will remain on greylist
With the decision approaching speedily, European Foundation for South Asian Studies (EFSAS) has said Pakistan might remain on the greylist, the Sunday Guardian reported. It said Pakistan will escape the FATF blacklist by "skin of its teeth". "It'll almost certainly remain on the greylist as it has little chance of securing the 15 votes required to get itself out of the list," the think-tank noted.