Pakistan announces action plan to get off FATF grey list within a year, says Miftah Ismail

Dr. Miftah Ismail. (REUTERS)
Updated 13 April 2018
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Pakistan announces action plan to get off FATF grey list within a year, says Miftah Ismail

  • He says the steps they take will address the concerns of the international community
  • Rules out seeking financial assistance from IMF to bridge the current-account deficit

KARACHI: In an attempt to allay the concerns of Financial Action Task Force (FATF), Pakistan has stated that it will have an action plan ready by June this year. The country hopes that as a result it will be off the organization’s grey list within a year.
In an exclusive interview with Arab News, Dr. Miftah Ismail, the adviser to the prime minister on finance, said that the plan would be formulated and executed within three months to allay the concerns of the international community.
“Yesterday, I talked to the representative of FATF and assured him that we would make an action plan,” he said. “By implementing that action plan, Pakistan will be off the grey list within a year.”
The FATF was established in July 1989 by a Group of Seven summit in Paris. Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
Pakistan is due to be added to the FATF grey list in June, despite the country’s attempts to reassure the international community.
“During our meetings with the representatives of FATF, Pakistan presented its point of view, but western countries, particularly the United States, were not ready to listen to us,” said Ismail.
A recently announced tax-amnesty scheme had added to FATF concerns about Pakistan, but Ismail said this was being addressed.
“They simply wanted us to give them assurance in writing that we were not violating anti-money laundering laws,” he said. “We have given them assurance in writing that the amnesty scheme is not for criminal offenses, but for tax evasion.”
Ismail said that the addition of Pakistan to the grey list of would only increase the accounting requirements.
The country is facing a burgeoning current-account deficit that has risen to $10.4 billion, mainly due to increased imports and a fall in exports.
However, he said the government saw no need to seek financial assistance from the International Monetary Fund, given the recent devaluation of the rupee and signs that exports were starting to rise again.
Ismail ruled out a further devaluation of currency, after the already-completed 10 percent depreciation, saying the market has positively responded to the government’s move.
“People were expecting a 10 percent devaluation of the Pak rupee, which was achieved without increasing the rate of inflation in the country,” he said.
“We feel that there is no need for further devaluation.
“We have twice devalued our currency and our exports increased by 24 percent in March. We think that we are moving on the right path to reduce the current-account deficit. Obviously, remittances are also increasing.”

In addition, he ruled out the possibility of floating bonds/Sukuk on the international market during the current fiscal year.

“If we are elected and form the next government, we will go to the international market in November or December to raise funds,” he said, without giving any further details.
However, Ismail did not rule out the possibility of asking friendly countries for deficit financing, though he added that no such move was under discussion at present.
“We can go to any country,” he said. “For example, if we want to go to Saudi Arabia we will ask them for oil-export credit but no present talks are going on about this.”
Regarding the shifts in economic policy since the departure of former finance minister Ishaq Dar in November 2017, he said the only change was the devaluation of the currency.
“I did what I deemed best in the interests of Pakistan,” he added.
Ismail also addressed the frequent power outages in the port city of Karachi, despite the government’s claim of adding nearly 10,000 megawatts of electricity to the national grid.
“The load shedding in Karachi is the result of a tussle between the Sui Southern Gas Company and K-Electric,” he said.
He added that the government was “trying to resolve the issue as soon as possible.”
Looking ahead to the budget that will be presented on April 27, Ismail confirmed that the duty imposed to discourage imports of finished goods will remain, though it would be abolished for intermediate goods.
“This budget will be appreciated by all political parties,” he said. “The next government can make small changes to it, but 90 percent of the budget will be the one we have at present.”


Afghans push back against international calls for cricket team ban

Updated 02 February 2025
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Afghans push back against international calls for cricket team ban

  • Cricket is considered the most popular sport in Afghanistan, representing hope for many Afghans
  • British lawmakers urge national cricket body to boycott Feb. 26 match against Afghanistan

KABUL: Afghans are pushing back against calls to ban their national cricket team from participating in international competitions, saying such a move would not reverse the Taliban’s increasing restrictions on women in the country.

Regarded as the most popular sport in Afghanistan, cricket has represented a rare bright spot for many as they struggle amid a devastating economic and humanitarian crisis sparked by sanctions slapped on them by the Taliban administration following their takeover in 2021.

Since last month, foreign campaigns calling for Afghanistan’s men’s team to be barred from international matches have been gaining traction as a protest against the Taliban restricting women’s access to education, the workplace and public spaces, as well as sports.

This includes British lawmakers urging the England and Wales Cricket Board to boycott England’s upcoming match against Afghanistan in the ICC Champions Trophy, which is scheduled to take place on Feb. 26.

“There are problems in the country — we can’t deny that — but cricket is certainly not one of them,” Ahmad Nadim, a 23-year-old cricket fan in Kabul, told Arab News.

“The national players were among the first ones to criticize the restrictions on girls’ education and they have continuously voiced their support for Afghan women’s rights. Cricket has been a great source of happiness for Afghans and still continues to be one.”

Despite record-setting performances — including high-profile victories against England, Pakistan, Sri Lanka and Australia — over the last few years, Afghanistan’s place on the world cricket stage has become increasingly controversial.

After the Taliban disbanded the country’s women’s team following their takeover, most squad members fled to Australia, where they reunited for a match just last week.

Though the International Cricket Council requires member nations to have both a men’s and a women’s team, as Afghanistan kept its status as a full member it triggered boycotts from countries like Australia and England, which have refused to play them in bilateral matches.

Human Rights Watch have also called on the ICC to suspend Afghanistan’s membership “until women and girls can once again participate in education and sport” in the country.

In their home country, Afghans are openly opposing the boycotts and are calling for sports to be separated from politics.

“Afghanistan’s cricket team is all supportive of women’s rights to education because education is the foundation of a strong society and development in the country,” Hasti Gul Abid, an Afghan cricketer who has played for the national team, told Arab News.

“Afghanistan’s cricket reached the current stage with a lot of difficulties,” he said. “The people of Afghanistan have been supporting their national team since day one. Our people contributed to the advancement of cricket as much as the players did.”

As the men’s team’s popularity and victories have brought joy across the country on many occasions, some argue that the squad should not be seen as representatives of the Taliban government.

“The cricket team belongs to the whole country and all Afghans. It represents us all, not a specific political or ethnic group,” said 21-year-old Khanzada Shaheen, who plays in a local cricket team in Kabul.

Banning Afghanistan’s cricket team will not change the Taliban’s policies against women, said Lal Pacha, a fruit vendor in Kabul.

“We all want Afghan girls to return to schools and universities but why punish our cricket team for that?” he told Arab News.

“Let’s say the cricket team is banned from playing internationally, will this change the Islamic Emirate’s policy? There’s no logic in the demand for banning the cricket team.”


Man arrested in UK over alleged Qur’an burning

Updated 02 February 2025
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Man arrested in UK over alleged Qur’an burning

  • Incident took place in Manchester, from where it was live-streamed on social media
  • Man, who held up Israeli flag during broadcast, remains in custody on suspicion of racially aggravated offense

LONDON: A 47-year-old man has been arrested in the UK on suspicion of a racially aggravated offense after a Qur’an was reportedly set on fire.

The incident occurred in the center of the city of Manchester on Saturday and was live-streamed on social media.

It took place in front of the Glade of Light memorial, which was installed to honor the memory of the victims of the 2017 Manchester Arena bombing.

On the live stream, an individual tore out pages of a book appearing to be a Qur’an, before setting fire to each one. He also held up an Israeli flag during the broadcast.

Greater Manchester Police said in a statement that it arrested a man on the same day “on suspicion of a racially aggravated public order offence.” The man, who has not been named, remains in police custody.

Assistant Chief Constable Stephanie Parker said: “We understand the deep concern this will cause within some of our diverse communities and are aware of a live video circulating.

“We made a swift arrest at the time and recognise the right people have for freedom of expression, but when this crosses into intimidation to cause harm or distress we will always look to take action when it is reported to us.”


Canada announces retaliatory measures against Trump tariffs; China also vows ‘countermeasures’

Updated 02 February 2025
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Canada announces retaliatory measures against Trump tariffs; China also vows ‘countermeasures’

  • Trump placed duties of 10 percent on all imports from China, 25 percent on imports from Mexico and Canada
  • Says decision necessary “to protect Americans,” although it could throw global economy into possible turmoil

OTTAWA: Canada’s Prime Minister Justin Trudeau said on Saturday Canada would impose 25 percent tariffs on C$155 billion ($106.5 billion) of US goods in response to tariffs imposed by US President Donald Trump.

C$30 billion would take effect from Tuesday and C$125 billion in 21 days, Trudeau told a news conference.

China also said it “firmly opposes” the new tariffs imposed on Beijing and vowed to take “corresponding countermeasures to resolutely safeguard our own rights and interests.”

Trump earlier signed an executive order imposing 25 percent tariffs on all goods from Canada and Mexico starting on Tuesday except Canadian energy products, which will be subject to a 10 percent duty.

Trudeau warned the tariffs would hurt the United States, a long-time ally. He encouraged Canadians to buy Canadian products and vacation at home rather than in the US.

He said some non-tariff measures, including some relating to critical minerals, energy procurement and other partnerships are being looked at.

Trump also unveiled sweeping measures against China, announcing an additional 10 percent tariff on Chinese imports on top of existing duties.

In a statement on Sunday, China’s commerce ministry slammed Washington’s “erroneous practices,” saying Beijing was “strongly dissatisfied with this and firmly opposes it.”
The ministry said Beijing would file a lawsuit at the World Trade Organization, arguing that “the unilateral imposition of tariffs by the United States seriously violates WTO rules.”

It added that the duties were “not only unhelpful in solving the US’s own problems, but also undermine normal economic and trade cooperation.”

“China hopes that the United States will objectively and rationally view and deal with its own issues like fentanyl, rather than threatening other countries with tariffs at every turn,” the ministry said.

It said Beijing “urges the US to correct its erroneous practices, meet China halfway, face up to its problems, have frank dialogues, strengthen cooperation and manage differences on the basis of equality, mutual benefit and mutual respect.”


Canada announces retaliatory measures against Trump tariffs; China also vows ‘countermeasures’

Updated 02 February 2025
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Canada announces retaliatory measures against Trump tariffs; China also vows ‘countermeasures’

  • Canada would impose 25 percent tariffs on C$155 billion ($106.5 billion) of US goods, PM Trudeau says
  • China says the duties were “not only unhelpful in solving the US’s own problems, but also undermine normal economic and trade cooperation”

OTTAWA: Canada’s Prime Minister Justin Trudeau said on Saturday Canada would impose 25 percent tariffs on C$155 billion ($106.5 billion) of US goods in response to tariffs imposed by US President Donald Trump.

C$30 billion would take effect from Tuesday and C$125 billion in 21 days, Trudeau told a news conference.

China also said it “firmly opposes” the new tariffs imposed on Beijing and vowed to take “corresponding countermeasures to resolutely safeguard our own rights and interests.”

Trump earlier signed an executive order imposing 25 percent tariffs on all goods from Canada and Mexico starting on Tuesday except Canadian energy products, which will be subject to a 10 percent duty.

Trudeau warned the tariffs would hurt the United States, a long-time ally. He encouraged Canadians to buy Canadian products and vacation at home rather than in the US.

 

 

He said some non-tariff measures, including some relating to critical minerals, energy procurement and other partnerships are being looked at.

Trump also unveiled sweeping measures against China, announcing an additional 10 percent tariff on Chinese imports on top of existing duties.

In a statement on Sunday, China’s commerce ministry slammed Washington’s “erroneous practices,” saying Beijing was “strongly dissatisfied with this and firmly opposes it.”
The ministry said Beijing would file a lawsuit at the World Trade Organization, arguing that “the unilateral imposition of tariffs by the United States seriously violates WTO rules.”

It added that the duties were “not only unhelpful in solving the US’s own problems, but also undermine normal economic and trade cooperation.”

“China hopes that the United States will objectively and rationally view and deal with its own issues like fentanyl, rather than threatening other countries with tariffs at every turn,” the ministry said.

It said Beijing “urges the US to correct its erroneous practices, meet China halfway, face up to its problems, have frank dialogues, strengthen cooperation and manage differences on the basis of equality, mutual benefit and mutual respect.”
 


Zelensky says excluding Ukraine from US-Russia talks about war is ‘very dangerous’

Updated 02 February 2025
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Zelensky says excluding Ukraine from US-Russia talks about war is ‘very dangerous’

  • Zelensky’s remarks followed comments Friday by Trump, who said American and Russian officials were “already talking” about ending the war
  • Without security guarantees from Ukraine’s allies, Zelensky said, any deal struck with Russia would only serve as a precursor to future aggression

KYIV, Ukraine: Ukrainian President Volodymyr Zelensky said Saturday that excluding his country from talks between the US and Russia about the war in Ukraine would be “very dangerous” and asked for more discussions between Kyiv and Washington to develop a plan for a ceasefire.
Speaking in an exclusive interview with The Associated Press, Zelensky said Russia does not want to engage in ceasefire talks or to discuss any kind of concessions, which the Kremlin interprets as losing at a time when its troops have the upper hand on the battlefield.
He said US President Donald Trump could bring Russian President Vladimir Putin to the table with the threat of sanctions targeting Russia’s energy and banking system, as well as continued support of the Ukrainian military.
“I think these are the closest and most important steps,” he said in the interview in the Ukrainian capital that lasted for more than an hour.
Zelensky’s remarks followed comments Friday by Trump, who said American and Russian officials were “already talking” about ending the war. Trump said his administration has had “very serious” discussions with Russia, but he did not elaborate.
“They may have their own relations, but talking about Ukraine without us — it is dangerous for everyone,” Zelensky said.
He said his team has been in contact with the Trump administration, but those discussions are at a “general level,” and he believes in-person meetings will take place soon to develop more detailed agreements.
“We need to work more on this,” he said, adding that Trump understandably appeared to be focused on domestic issues in the first weeks after his inauguration.

The nearly three-year war in Ukraine is at a crossroads. Trump promised to end the fighting within six months of taking office, but the two sides are far apart, and it is unclear how a ceasefire deal would take shape. Meanwhile, Russia continues to make slow but steady gains along the front, and Ukrainian forces are enduring severe manpower shortages.
Most Ukrainians want a pause in fighting to rebuild their lives. The country faces near-daily Russian attacks on homes, and strikes on power systems have plunged entire cities into darkness.
Millions of Ukrainians have been displaced, unable to return to their homes after vast tracts of the country’s east have been reduced to rubble. Nearly a fifth of Ukraine is now occupied by Russia. In those areas, Moscow-appointed authorities are swiftly erasing any hint of Ukrainian identity.
With Trump back in the White House, Ukraine’s relationship with the US, its largest and most important ally, is also at a tipping point.
In an initial phone call with Trump during the presidential campaign, Zelensky said, the two agreed that if Trump won, they would meet to discuss the steps needed to end the war. But a planned visit by Trump’s Ukraine envoy, Keith Kellogg, was postponed “for legal reasons” Zelensky said. That was followed by a sudden foreign aid freeze that effectively caused Ukrainian organizations to halt projects.
“I believe that, first and foremost, we (must) hold a meeting with him, and that is important. And that is, by the way, something that everyone in Europe wants,” Zelensky said, referring to “a common vision of a quick end to the war.”
After the conversation with Trump, “we should move on to some kind of format of conversation with Russians. And I would like to see the United States of America, Ukraine and the Russians at the negotiating table. ... And, to be honest, a European Union voice should also be there. I think it would be fair, effective. But how will it turn out? I don’t know.”
Zelensky cautioned against allowing Putin to take “control” over the war, an apparent reference to Russia’s repeated threats of escalation during President Joe Biden’s administration.
Without security guarantees from Ukraine’s allies, Zelensky said, any deal struck with Russia would only serve as a precursor to future aggression. Membership in the NATO alliance, a longstanding wish for Kyiv that Moscow has categorically rejected, is still Zelensky’s top choice.
NATO membership is the “cheapest” option for Ukraine’s allies, and it would also strengthen Trump geopolitically, Zelensky argued.
“I really believe that these are the cheapest security guarantees that Ukraine can get, the cheapest for everyone,” he said.
“It will be a signal that it is not for Russia to decide who should be in NATO and who should not, but for the United States of America to decide. I think this is a great victory for Trump,” he said, evidently appealing to the president’s penchant for winners and business deals.
In addition, Zelensky said, Ukraine’s 800,000-strong army would be a bonus to the alliance, especially if Trump seeks to bring home US troops who are stationed overseas.
Other security guarantee proposals should be backed up by sufficient weapons from the US and Europe, and support for Kyiv to develop its own defense industry, he said.
Zelensky also said a French proposal to put European forces in Ukraine to act as a deterrent against Russian aggression is taking shape, but he expressed skepticism, saying many questions remained about the command-and-control structure and the number of troops and their positions. The issue was raised by French President Emmanuel Macron and with Trump, he said.
“I said in the presence of the two leaders that we are interested in this as a part of the security guarantee, but not as the only guarantee of safety,” he said. “That’s not enough.”
He added: “Imagine, there is a contingent. The question is who is in charge? Who is the main one? What will they do if there are Russian strikes? Missiles, disembarkation, attack from the sea, crossing of the land borderline, offensive. What will they do? What are their mandates?”
Asked if he put those questions directly to Macron, he smiled and said: “We are still in the process of this dialogue.”
Following a statement by US Secretary of State Marco Rubio that the war has set Ukraine back by 100 years, Zelensky urged Rubio to visit Ukraine.
Rubio “needs to come to Ukraine, first of all, to see what Russia has done,” the Ukrainian president said. “But also to see what the Ukrainian people did, what they were able to do for the security of Ukraine and the world, as I said, and just talk to these people.”