14 May 2019
Pakistan will implement fiscal and regulatory reforms, including strengthening its controls against financial crime, as part of a 3-year, $6 billion bailout agreement reached with the International Monetary Fund (IMF), the organization said Sunday.
The staff-level agreement, which has yet to be approved by the IMF’s board, would seek to address Pakistan’s “lackluster growth, elevated inflation, high indebtedness and a weak external position,” the fund said in a statement.
Under the plan, Pakistan would implement reforms to strengthen its institutions governance as well as to combat money laundering and the financing of terrorism, among other steps.
Last week, Indian Finance Minister Arun Jaitley said his government would ask the Paris-based Financial Action Task Force (FATF) to blacklist Pakistan for failing to sufficiently adhere to the intergovernmental group’s recommendations on fighting money laundering and terrorism financing, Reuters reported.
The announcement shortly followed a UN Security Council decision to blacklist Masood Azhar, the founder of the Pakistan-based Jaish-e-Mohammad militant group.
FATF, which includes Pakistan on a list of countries with “strategic deficiencies” in fighting financial crime, said in February that the country does not “demonstrate a proper understanding” of its vulnerabilities to terrorist financing and called on the nation to “swiftly” implement reforms by this month.
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