Pakistan tries to mitigate risk of FATF financial restrictions

Pakistani politician and political economist Miftah Ismail. (Photo courtesy: social media)
Updated 20 February 2018
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Pakistan tries to mitigate risk of FATF financial restrictions

ISLAMABAD: Islamabad dispatched an adviser to the prime minister to attend the Financial Action Task Force (FATF) plenary session, as fears grow that Pakistan will be placed back on the watchdog’s international terror-financing watch list. 
Dr. Miftah Ismail toured Europe last week, briefing FATF member countries on steps Pakistan has taken to stay compliant. 
He was not originally scheduled to attend the FATF session in Paris on the safety and security of the global financial system, but the situation required his presence to plead Islamabad’s case.
A draft resolution to place Pakistan on the FATF’s list is spearheaded by the US, with the support of Britain, France and Germany.
The US is reportedly concerned about Islamabad’s commitment to tackling money laundering and terror financing.
“The measure to blacklist Pakistan is part of a propaganda (campaign) to economically destabilize our country,” said Interior Minister Ahsan Iqbal, adding that Pakistan has borne the brunt of the war on terror.
US-Pakistani relations hit a new low last year when Washington, unveiling its new strategy for Afghanistan, accused Islamabad of harboring and supporting terrorists.
Pakistani Foreign Minister Khawaja Mohammed Asif is currently visiting Moscow 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 Pakistan’s inclusion on the watch list.
Last year, the 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.
Should it be put back on the watch list, 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. 
Pakistan spent five years on the watch list from 2010, before its compliance with international standards saw it removed.
“It’s a pressure tactic to force Pakistan to do more than it’s already doing,” former diplomat Javed Hafiz told Arab News.
“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 as “near lethal.” 
The cost to banks’ customers will rise, investors in the international capital market will request a much higher rate of return from Pakistan, and multilateral financing organizations will add risk premiums on any money borrowed, he said.
Furthermore, financial experts fear that 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 EU.
“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.”
But Dr. Ashfaq Hasan Khan, a former adviser to the Finance Ministry, believes that Pakistan’s inclusion on the FATF’s list may not have the expected impact.
“Pakistan has done a lot as far as anti-money laundering is concerned. It took additional steps last week to further strengthen (that section of the law),” he said, referring to Islamabad’s operation against Jamat- ud -Dawa (JuD) and its charity wing, the Falah-e-Insaniat Foundation (FIF).
Both the 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.
The impact on Pakistan’s relations with the international financial market would be insignificant, Khan said. 
The FATF “deals with terror financing and money laundering, against which we’ve taken action,” he added.
The present government would not allow the US “to pull Pakistan’s strings financially,” Khan said.
India has 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 (GCC).
“We’re relying far too heavily on China. I don’t think even China likes that,” said Masood. Pakistan needs to focus on internal stability before it can successfully resist international pressure, and 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,” he added.


Pakistan’s anti-terror body warns of militant threat to opposition protest in Islamabad

Updated 11 sec ago
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Pakistan’s anti-terror body warns of militant threat to opposition protest in Islamabad

  • NACTA alert says Taliban militants have entered Pakistan, may target Imran Khan’s party rally
  • PTI has urges people to join Sunday’s protest in the capital to secure Khan’s release from prison

KARACHI: Pakistan’s National Counter Terrorism Authority (NACTA) has warned of potential militant attacks targeting former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party’s protest march, according to a classified alert shared with provincial officials earlier this week.
The alert, issued on Thursday but revealed in the media on Saturday, cited intelligence from “multiple sources” indicating that militants belonging to the banned Tehreek-e-Taliban Pakistan (TTP) had entered Pakistan from Afghanistan and infiltrated major cities.
Referring to the TTP as “Fitna Al Khawarij (FAK),” the alert warned that its fighters could target participants of the PTI protest.
“Sources have confirmed that FAK elements are planning to conduct such activities in public/political gatherings; most likely upcoming PTI protest/march as opportunity to exploit for their vested interest,” the alert, in possession of Arab News, said.
A senior NACTA official, speaking on condition of anonymity, confirmed its authenticity.
The PTI has called on its followers to march on Islamabad on Sunday to demand Khan’s release, as he has been imprisoned for over a year.
The march also aims to protest alleged electoral manipulation in February’s general elections and to highlight concerns over judicial independence, which the government has denied.
The Taliban have not officially responded to the alert regarding their potential involvement in attacks. However, the militant group has previously maintained that it has a policy of not targeting ordinary citizens.
The government has already urged the PTI to call off the protest, citing an Islamabad High Court ruling that instructed authorities to engage with the party and ensure no disruptions in the capital ahead of a major foreign delegation visit next week.
According to Pakistan’s foreign office, Belarusian President Aleksandr Lukashenko will arrive in Islamabad on a three-day visit starting Monday to discuss economic collaboration between the two countries.


KSrelief officials join global delegation meeting PM Sharif to boost Pakistan’s polio fight

Updated 11 min 14 sec ago
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KSrelief officials join global delegation meeting PM Sharif to boost Pakistan’s polio fight

  • Shehbaz Sharif says his government will not rest until the ‘scourge of polio’ is completely eradicated
  • Pakistan has reported 52 polio cases since the beginning of the year, mostly from KP and Balochistan

KARACHI: Officials from Saudi aid agency KSrelief, as part of a Global Polio Eradication Initiative delegation, met Prime Minister Shehbaz Sharif to discuss strengthening Pakistan’s vaccination campaigns, tackling polio challenges and securing support for a polio-free future, according to an official statement released on Saturday.
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The South Asian nation’s polio eradication campaign has faced serious challenges, with a significant spike in reported cases this year amid militant attacks on polio teams, prompting officials to reassess their approach to combating the crippling disease.
Pakistan reported two new polio cases from Dera Ismail Khan in the northwestern Khyber Pakhtunkhwa (KP) province a day earlier, bringing the total number of cases to 52 since the beginning of the year.
“Pakistan hosted a high-level delegation from the GPEI for a second time this year from Nov. 20-22,” the Pakistan Polio Eradication Program (PPEP) said in a statement, adding that the meeting reflected the highest level of political commitment to eradicating polio in the country.
The delegation included two senior KSrelief officials along with World Health Organization, Bill & Melinda Gates Foundation and UNICEF representatives.
The prime minister expressed gratitude to the delegation for supporting Pakistan, emphasizing that the country considers the eradication of polio a top priority.
“A strategic National Emergency Action Plan is being implemented to reverse the virus surge, and all chief ministers and secretaries are providing direct oversight and working in coordination to fight the current polio outbreak,” Sharif was quoted as saying.
“The Government of Pakistan will not rest until we have ended the scourge of polio from our borders,” he added.
The delegation also visited metropolitan Karachi during their stay in the country, where its members met with female frontline health workers to discuss the challenges they face and explore ways to address them, the statement said.
Of the 52 polio cases reported in 2024, 24 were from Balochistan province, 13 from Sindh, 13 from KP, and one each from Punjab and Islamabad, the federal capital.
Poliovirus, which can cause crippling paralysis, particularly in young children, remains incurable and continues to threaten human health as long as it is not eradicated. Immunization campaigns have succeeded in most countries and have made significant progress in Pakistan, but persistent challenges remain.
In the early 1990s, Pakistan reported approximately 20,000 cases annually, but by 2018 the number had dropped to eight. Six cases were reported in 2023, and only one in 2021.


Government rules out talks with Imran Khan’s party, threatens arrests ahead of Islamabad protest

Updated 23 November 2024
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Government rules out talks with Imran Khan’s party, threatens arrests ahead of Islamabad protest

  • PTI’s Ali Amin Gandapur asks all Pakistanis to come out and join the protest in the capital on Sunday
  • Interior minister has informed the top PTI leader the government will not allow the ‘illegal’ demonstration

ISLAMABAD: The government denied any negotiations with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party on Saturday, which plans to protest in Islamabad tomorrow, with the country’s information minister, Attaullah Tarar, warning of arrests if anyone came out to join the demonstration.
The PTI has called for a “long march” to the capital to demand Khan’s release, as he has been in prison for well over a year, and to challenge alleged rigging in the February general elections. The party also seeks to highlight its concerns about judicial independence, which it claims has been undermined by the 26th Constitutional Amendment, a charge denied by the government.
The Islamabad High Court (IHC) on Thursday directed the government to engage in talks with PTI leadership regarding the protest, emphasizing the need to avoid disruptions during the three-day visit of Belarusian President Aleksandr Lukashenko starting Monday. The court hoped the PTI would have “meaningful communication” with the government, acknowledging that law and order would be the administration’s priority if there was no breakthrough.
Subsequently, Pakistan’s interior minister, Mohsin Naqvi, met with PTI chairman Barrister Gohar Ali Khan to inform him that the government could not allow the protest under the current circumstances.
“There is no communication on any level,” Tarar said, adding that Naqvi’s contact with the PTI leader was limited to informing him of the IHC order that “declared protests, rallies, sit-ins and marches illegal.”
“The court’s directive is clear, and anyone who attempts to protest will be arrested and face legal consequences,” he continued. “There is no confusion on our part.”
Authorities have taken extensive measures to preempt potential disruptions, sealing off motorways and key roads leading to Islamabad with shipping containers.
However, Chief Minister of Pakistan’s northwestern Khyber Pakhtunkhwa province, Ali Amin Gandapur, a close aide of the jailed former prime minister, reiterated the call to all Pakistanis to join the protest during the day.
“It is imperative for us to leave our homes to protest the illegal incarceration of Imran Khan and stage a demonstration at D-Chowk on Nov. 24,” he proclaimed in a video message, referring to a high-security area located right next to sensitive government installations like Parliament, Presidency and the PM House.
“We all have to reach there and not leave until our demands are met,” he continued, saying the PTI wanted Khan’s release along with the return of its mandate in the last general elections, which the party said was rigged to keep it out of power.
He pointed out the PTI wanted an end to “fascism inflicted on us” and protection of the constitution in the country.
“Since the protest call is from Imran Khan, we will not go back until our demands are met,” he added.
The National Highways and Motorway Police (NHMP) stated on Friday that it had shut down major highways based on intelligence reports indicating that protesters might carry sticks and slingshots and attempt to disrupt public order.
“To protect lives and ensure public safety, major arteries have been sealed,” an NHMP statement said, adding that violators would face strict action.
Additionally, a ban on public gatherings has been imposed in Punjab until November 25, while the Metro Bus service between Islamabad and Rawalpindi will remain suspended on November 24.
Pakistan’s parliament earlier this year passed legislation regulating public demonstrations in the capital, including designated protest areas and specific timings for rallies. Violators risk imprisonment of up to three years for illegal gatherings and up to 10 years for repeat offenses.
The interior ministry has also deployed paramilitary forces, including Punjab Rangers and Frontier Corps personnel, in Islamabad to maintain order during the PTI’s planned demonstration.
Tarar also stated during his remarks that the government would not allow anyone to take the law into their own hands.


UK announces £108 million to support Pakistani businesses tackle climate change

Updated 23 November 2024
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UK announces £108 million to support Pakistani businesses tackle climate change

  • Funds will help businesses develop climate technologies, support Pakistan’s private sector
  • UK government says program will support the creation of over 100,000 Pakistani jobs

ISLAMABAD: The United Kingdom (UK) government this week announced £108 million in funds to support Pakistani businesses adapt to climate challenges, saying that it would help them develop technologies and meet significant investments required to tackle climate threats.
The announcement was made at the culmination of the two-day visit by British Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan Hamish Falconer to Islamabad on Friday.
The British government said the funding will support a first-of-its-kind investment facility to deliver climate technologies and private sector support in Pakistan. The program will be delivered in partnership with the International Finance Corporation.
“The UK and Pakistan are committed to tackling tomorrow’s threats today,” Falconer was quoted as saying by the British government on Friday. 
“That’s why we’re investing in the expertise needed and supporting local businesses, alongside the Government of Pakistan, to get ahead of the challenges that climate change poses to the Pakistani people and the world.”
According to the Global Climate Risk Index, Pakistan is among the countries most at risk from climate change. The 2022 floods, which experts linked to global warming, impacted over 33 million people, resulted in more than 1,700 deaths and caused an estimated $33 billion in damages.
Pakistan’s economic struggles and high debt burden put a strain on its resources and impinged its ability to respond to the disaster.
Pakistan has also been grappling with increasingly unpredictable weather patterns, including droughts, heatwaves, and heavy rainfall. This year, the country experienced its heaviest April rainfall since 1961, with 59.3 millimeters recorded. Additionally, several regions faced severe heatwaves in May and June.
“The program will leverage the £108m the UK puts in to mobilize 5-6 times that amount of investment from the private sector and will support the creation of over 100,000 Pakistani jobs,” the British government said on its official website. 
Pakistan and the UK enjoy strong military, economic and educational ties, with the latter hosting a large Pakistani diaspora.
Recent high-level visits by military leaders from both countries have signalled a deepening of defense ties and cooperation. The strong relationship is built on a shared history and the significant presence of a Pakistani diaspora in the country.


Cannot allow Islamabad protest, Pakistan interior minister tells ex-PM Khan’s party

Updated 23 November 2024
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Cannot allow Islamabad protest, Pakistan interior minister tells ex-PM Khan’s party

  • Jailed Imran Khan’s party has called for “long march” to Islamabad on Nov. 24 to demand his release
  • Pakistani authorities block roads, seal off motorways ahead of opposition’s Islamabad protest

ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Saturday discussed the prevailing political situation in the country with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) Chairman Gohar Ali Khan, warning him that the government will not allow the party to stage a protest sit-in or rally in the capital.
Thousands of Khan supporters are expected to arrive in Islamabad on Sunday for a “long march” to the capital. The PTI’s march is primarily aimed at pressurizing the government to end the jailed Khan’s imprisonment, which has lasted for over a year, on what his party contends are politically motivated charges. 
The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this. 
The Islamabad High Court (IHC) on Thursday directed the government to form a committee to hold discussions with the PTI. The court said that if no breakthrough was reached between the two parties, then the government would be responsible for maintaining law and order. It said that in that case, “no protest or rally or for that matter sit-in shall be allowed.”
“Mohsin Naqvi informed Barrister Gohar about the post-Islamabad High Court order situation,” state broadcaster Radio Pakistan reported. “He said we are bound by the high court’s order and cannot permit any procession, sit-in or rally.”
The minister informed the PTI chairman about the engagements of the 80-member high-level delegation accompanying the president of Belarus, who will be in Islamabad from Nov. 24-27. 
“Barrister Gohar said he will inform the Interior Minister about the final response after party consultation,” the state media said. 
MOTORWAYS, MAJOR ARTERIES SEALED
Pakistan’s National Highways and Motorway Police (NHMP) said on Friday that motorways across the country leading to Islamabad have been sealed from various areas to protect people’s lives ahead of the PTI’s planned protest. 
Authorities sealed off major arteries and roads with shipping containers leading to Islamabad from the surrounding Rawalpindi city, including at the Faizabad terminal, and other areas on Friday. 
In a notification released on Friday, the NHMP cited intelligence reports that protesters were planning to disrupt law and order in the capital, adding that they would be armed with sticks and slingshots. 
“To prevent any untoward situation and to protect the lives of the people, motorways have been closed from various locations,” the NHMP said.
“The lives and property of the people will be guaranteed at all costs. Those who take the law into their hands will be dealt with strictly.”
Hours earlier on Friday, the NHMP had shared a notification on social media platform X in which it had said that certain sections of the motorway were closed due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot. 
As per local media reports, the Metro Bus service between the twin cities of Islamabad and Rawalpindi will be suspended on Nov. 24 while a ban on public gatherings has been imposed in Punjab from Nov. 23-25 ahead of the PTI’s march. 
Earlier this week, Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and Frontier Corps troops in Islamabad to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.