FATF, an international organization working against terrorism and corruption across the world, has decided not to remove Pakistan from its “gray list”. So far Pakistan has lost billions of dollars due to this.
The Financial Action Task Force said on Thursday that the Pakistani government has failed to fulfill three of the 27-point agenda against terrorism. For this reason, the task force has decided to retain him in the gray list.
The FATF has said in its statement that Pakistan has not been able to take any concrete action against the terrorists declared as banned by the United Nations. The international watchdog has put Pakistan on the gray list since June 2018 and has asked it to take action against terrorist groups and eliminate their sources of funds.
On the other hand, it has been said in a report that Pakistan has suffered billions of rupees due to the FATF’s gray list three times since 2008.
The findings were shared in a research paper published by an independent think tank based in Pakistan-based Tadlab, titled “Paying for Global Politics.
The Impact of FATF Gray-Listing on Pakistan’s Economy.” Research has shown that from 2008 to 2019, the country suffered a loss of $ 38 billion and this could possibly result in a decline in GDP as well.
The author of the research argued, “The data indicate that the economy has emerged several times after the removal of Pakistan from the FATF’s gray list, as is evident from the increase in GDP levels in 2017 and 2018.”
“A large part of the $ 38 billion deficit can be attributed to the reduction in domestic and government consumption spending,” the report said.
The report also said that FATF gray-listing could adversely affect the economy. Local investment, exports and foreign investment will decline amid fears about the future of the economy.
The report’s findings come at a time when Pakistan’s progress on actions taken to comply with FATF’s global standards to prevent money laundering and terror funding was reviewed at the FATF plenary meeting in Paris.