ISLAMABAD: Pakistan may be at risk of being placed back on the international terror-financing watch list of the Financial Action Task Force (FATF).
FATF began its six-day plenary meeting in Paris on Sunday to discuss the safety and security of the global financial system.
The resolution to place Pakistan on FATF’s list is spearheaded by the US, with the support of Britain, France and Germany. The US has reportedly had concerns about the depth of Pakistan’s commitment to tackling money laundering and terror financing.
US-Pakistan relations hit a new low last year when Washington — unveiling its new strategy for Afghanistan — accused Pakistan of harboring and supporting terrorists.
Pakistani Foreign Minister Khawaja Mohammed Asif is currently visiting Moscow on a four-day tour, at the invitation of his Russian counterpart Sergey Lavrov.
Asif will likely raise Islamabad’s concerns about the FATF in an attempt to muster Russian support against the four countries leading the attempt to include Pakistan on the watch list.
Last year, FATF’s International Cooperation Review Group resolved to scrutinize Pakistan’s apparent support of proscribed groups operating on its soil and requested a report on the country’s efforts to combat terror financing ahead of the its next sessions. The global intergovernmental organization meets three times a year.
“This time (the effects) would be even greater because there are other pressures on Pakistan,” political commentator and retired Lt. Gen. Talat Masood told Arab News, speculating on what might happen should Pakistan be included on the watch list again.
“Pakistan’s balance-of-payment position is very adverse at the moment and internal stability is not good. It will have a greater impact than it had last time,” he continued, urging the government to take “appropriate measures” to combat the imminent danger of sanctions.
Pakistan spent five years on FATF’s watch list from 2010, before its compliance with international standards saw it removed from the list.
Masood said that if financial restrictions are imposed on Pakistan, it would be as a result of the country’s “foreign policy and internal situation,” which he said the government needs to review and revise to avoid risking Pakistan’s economic stability and further tainting the country’s international image.
Former diplomat Javed Hafiz, however, believes “it’s an institutional, not a policy, problem.”
Hafiz told Arab News, “It’s a pressure tactic to force Pakistan to do more than it’s already doing. It’s already in our national action plan not to allow banned organizations (or individuals) to operate, even under a new name, and to freeze their assets.”
Senior economist Dr. Syed Nazre Hyder described the potential impact of Pakistan’s inclusion on the watch list — should it happen — as “near lethal.” He pointed out that the cost to banks’ customers will rise, investors in the international capital market would request a much higher rate of return from Pakistan, and multilateral financing organizations would add risk premiums on any money borrowed.
Furthermore, financial experts fear the International Monetary Fund (IMF) may reject any loan extension Pakistan might request as a bailout to curb its widening trade deficit, or offer a new deal with stricter guidelines dictated by the US and the European Union.
“Pakistan will need a loan to pay off its debt burden,” Hyder told Arab News. “If it’s included on the list, the country will face a serious challenge sourcing funds for repayment leading to the possibility of default. This would cripple Pakistan economically.”
Dr. Ashfaq Hasan Khan, a former adviser to the Ministry of Finance, believes Pakistan’s inclusion on the FATF’s list may not have the expected impact, however.
“Pakistan has done a lot as far as anti-money laundering is concerned. It’s taken additional steps last week to further strengthen (that section of law),” said Khan, referring to the government’s seize, freeze, and control operation against Jamat-ud-Dawa (JuD) and its charity wing, the Falah-e-Insaniat Foundation (FIF).
Both JuD and FIF are linked to Hafiz Saeed, whom India accuses of masterminding the November 2008 attacks in Mumbai. Saeed has a $10 million bounty on his head.
Khan believes the impact on Pakistan’s relations with the international financial market would be insignificant. The FATF, he pointed out, “deals with terror financing and money laundering, against which we have taken action.”
Khan said the present government would not allow the US “to pull Pakistan’s strings financially.”
India has also lobbied for Pakistan’s inclusion on the FATF list. But Islamabad is banking heavily on support from China, Russia, Turkey, and members of the Gulf Cooperation Council.
Masood, for one, thinks Pakistan’s need for Chinese support is worrying.
“We are relying far too heavily on China. I don’t think even China likes that,” he said, adding that Pakistan needs to focus on internal stability before it can successfully resist international pressure, and that it should use its relationship with China to gain tangible benefits, rather than “frittering it away to counter negative pressure from the US, India and others.”
Pakistan could face financial sanctions from FATF, say analysts
Pakistan could face financial sanctions from FATF, say analysts
UK police carry out controlled explosion near London Euston station
LONDON: British police carried out a controlled explosion near Euston railway station in central London after investigating a suspect package, they said on Saturday.
“A controlled explosion has been carried out by specialist officers and the police cordons have now been lifted,” the capital’s Metropolitan Police said on social media platform X.
LBC News reported earlier that the station had been evacuated.
In a previous statement, the police said they were aware of reports online about an incident “in the vicinity of Euston Station” and that cordons were in place as a precaution.
Those cordons have now been removed, they said in an update.
Afghanistan bets on ‘red gold’ for global market presence
- Afghanistan is the world’s second-largest saffron producer
- Afghan saffron considered world’s best by International Taste Institute
KABUL: With the saffron harvest season underway in Afghanistan, local traders are expecting better yields than in previous years, sparking hopes that exports of the precious crop, known locally as “red gold,” will help improve the country’s battered economy.
Afghanistan is the world’s second-largest saffron producer, after Iran. In June, the Belgium-based International Taste Institute named Afghan saffron as the world’s best for the ninth consecutive year.
Saffron is the world’s most expensive spice, selling for around $2,000 per kilogram. Its exports provide critical foreign currency to Afghanistan, where US-imposed sanctions have severely affected the economy since the Taliban took control in 2021.
With this year’s saffron yield expected to exceed 50 tons — roughly double that of the 2023 and 2022 seasons — the government and the Afghanistan National Saffron Union are looking to boost exports.
“The harvest of saffron this year is good. During the first nine months (of 2024), Afghanistan exported around 46 tons of saffron to different countries,” Abdulsalam Jawad Akhundzada, spokesperson at the Ministry of Industry and Commerce, told Arab News. “Everywhere our traders want to export saffron we support them through air corridors and facilitating the participation of Afghan traders in national and international exhibitions.”
Known to have been cultivated for at least 2,000 years, saffron is well suited to Afghanistan’s dry climate, especially in Herat, where 90 percent of Afghan saffron is produced. Most saffron trading is also centered in the province, which last weekend inaugurated its International Saffron Trade Center to facilitate exports.
“The new center has been established in accordance with global standards and will bring major processing and trade companies to one place, providing a single venue for farmers to trade their products in the best possible conditions,” Mohammad Ibrahim Adil, head of the Afghanistan National Saffron Union, told Arab News.
The union’s main export market is India, where saffron is a common ingredient in food, followed by the GCC — especially Saudi Arabia and the UAE.
“Saffron exports bring much-needed foreign currency to Afghanistan, contributing significantly to stabilization of the financial cycle in the country,” said Qudratullah Rahmati, the saffron union’s deputy head.
The union estimates that saffron contributes about $100 million to the Afghan economy a year.
Around 95 percent of the workers in the saffron industry are women, according to the union.
“Saffron production is supporting many families, especially women, during the harvest and processing phase through short- and long-term employment opportunities. There are around 80-85 registered saffron companies in Herat. The small ones employ four to five people while the bigger ones have up to 80 permanent staff,” Rahmati explained.
Harvesting saffron is difficult and time-consuming work. The flowers are handpicked, and their tiny orange stigmas are separated for drying. Roughly 440,000 stigmas are needed to produce one kilogram of the fragrant spice.
The harvest season usually begins sometime in October or November and lasts just a few weeks.
32 killed in new sectarian violence in Pakistan
- Senior police officer said Saturday armed men torched shops, houses and government property overnight
- Although the two groups generally live together peacefully, tensions remain, especially in Kurram
PESHAWAR, Pakistan: At least 32 people were killed and 47 wounded in sectarian clashes in northwest Pakistan, an official said on Saturday, two days after attacks on Shiite passenger convoys killed 43.
Sporadic fighting between Sunni and Shiite Muslims in the mountainous Khyber Pakhtunkhwa province bordering Afghanistan has killed around 150 over the past months.
“Fighting between Shiite and Sunni communities continues at multiple locations. According to the latest reports, 32 people have been killed which include 14 Sunnis and 18 Shiites,” a senior administrative official said on condition of anonymity on Saturday.
On Thursday, gunmen opened fire on two separate convoys of Shiite Muslims traveling with police escort in Kurram, killing 43 while 11 wounded are still in “critical condition,” officials told AFP.
In retaliation Shiite Muslims on Friday evening attacked several Sunni locations in the Kurram district, once a semi-autonomous region, where sectarian violence has resulted in the deaths of hundreds over the years.
“Around 7 p.m. (1400 GMT), a group of enraged Shiite individuals attacked the Sunni-dominated Bagan Bazaar,” a senior police officer stationed in Kurram said.
“After firing, they set the entire market ablaze and entered nearby homes, pouring petrol and setting them on fire. Initial reports suggest over 300 shops and more than 100 houses have been burned,” he said.
Local Sunnis “also fired back at the attackers,” he added.
Javedullah Mehsud, a senior official in Kurram said there were “efforts to restore peace ... (through) the deployment of security forces” and with the help of “local elders.”
After Thursday’s attacks that killed 43, including seven women and three children, thousands of Shiite Muslims took to the streets in various cities of Pakistan on Friday.
Several hundred people demonstrated in Lahore, Pakistan’s second city and Karachi, the country’s commercial hub.
In Parachinar, the main town of Kurram district, thousands participated in a sit-in, while hundreds attended the funerals of the victims, mainly Shiite civilians.
Tribal and family feuds are common in Sunni-majority Pakistan, where the Shiite community has long suffered discrimination and violence.
The latest violence drew condemnation from officials and human rights groups.
The independent Human Rights Commission of Pakistan (HRCP) urged authorities this month to pay “urgent attention” to the “alarming frequency of clashes” in the region, warning that the situation has escalated to “the proportions of a humanitarian crisis.”
“The fact that local rival groups clearly have access to heavy weaponry indicates that the state has been unable to control the flow of arms into the region,” HRCP said in a statement.
Last month, at least 16 people, including three women and two children, were killed in a sectarian clash in the district.
Previous clashes in July and September killed dozens of people and ended only after a jirga, or tribal council, called a ceasefire. HRCP said 79 people died between July and October in sectarian violences
These clashes and attacks come just days after at least 20 soldiers were killed in separate incidents in the province.
Pakistan locks down capital ahead of a planned rally by Imran Khan supporters
- Interior Ministry is considering a suspension of mobile phone services in parts of Pakistan in the coming days
- Pakistan has banned gatherings of five or more people in Islamabad for two months to deter Khan’s supporters
ISLAMABAD: Pakistan is sealing off its capital, Islamabad, ahead of a planned rally by supporters of imprisoned former premier Imran Khan.
It’s the second time in as many months that authorities have imposed such measures to thwart tens of thousands of people from gathering in the city to demand Khan’s release.
The latest lockdown coincides with the visit of Belarusian President Alexander Lukashenko, who arrives in Islamabad on Monday.
Local media reported that the Interior Ministry is considering a suspension of mobile phone services in parts of Pakistan in the coming days. On Friday, the National Highways and Motorway Police announced that key routes would close for maintenance.
It advised people to avoid unnecessary travel and said the decision was taken following intelligence reports that “angry protesters” are planning to create a law and order situation and damage public and private property on Sunday, the day of the planned rally.
“There are reports that protesters are coming with sticks and slingshots,” the statement added.
Multicolored shipping containers, a familiar sight to people living and working in Islamabad, reappeared on key roads Saturday to throttle traffic.
Pakistan has already banned gatherings of five or more people in Islamabad for two months to deter Khan’s supporters and activists from his Pakistan Tehreek-e-Insaf party, or PTI.
Khan has been in prison for more than a year in connection and has over 150 criminal cases against him. But he remains popular and the PTI says the cases are politically motivated.
A three-day shutdown was imposed in Islamabad for a security summit last month.
Indian man awakes on funeral pyre
- Doctors sent Rohitash Kumar, 25, to mortuary instead of conducting postmortem after he fell ill
- Kumar was rushed to hospital on Friday for treatment but was confirmed dead later
JAIPUR: An Indian man awoke on a funeral pyre moments before it was to be set on fire after a doctor skipped a postmortem, medical officials said Saturday.
Rohitash Kumar, 25, who had speaking and hearing difficulties, had fallen sick and was taken to a hospital in Jhunjhunu in the western state of Rajasthan on Thursday.
Indian media reported he had had an epileptic seizure, and a doctor declared him dead on arrival at the hospital.
But instead of the required postmortem to ascertain the cause of death, doctors sent him to the mortuary, and then to be burned according to Hindu rites.
D. Singh, chief medical officer of the hospital, told AFP that a doctor had “prepared the postmortem report without actually doing the postmortem, and the body was then sent for cremation.”
Singh said that “shortly before the pyre was to be lit, Rohitash’s body started movements,” adding that “he was alive and was breathing.”
Kumar was rushed to hospital for a second time, but was confirmed dead on Friday during treatment.
Authorities have suspended the services of three doctors and the police have launched an investigation.
