ISLAMABAD: Pakistan is hopeful to exit the grey list of Financial Action Task Force (FATF) this Friday after the upcoming plenary of the global dirty money watchdog in Paris since the country has successfully implemented 34 action points to counter money laundering and terrorism financing, said officials on Wednesday.
The FATF downgraded Pakistan to its “increased monitoring list” – commonly known as the grey list – in June 2018.
The list includes countries with weak financial systems which can be exploited by criminal elements for money laundering and terrorism financing. These countries formally pledge to work with the task force to strengthen their financial systems by making necessary amendments to them.
Pakistan also agreed to address the deficiencies in its legal, financial and regulatory systems to curb money-laundering and terrorism financing. The country was initially handed over a 27-point action plan, though it was later enhanced to 34 to address all the deficiencies.
“We are hopeful to exit the grey list as we have met all the requirements,” a top Federal Board of Revenue (FBR) official, who was involved in implementing the watchdog’s concerns regarding designated non-financial businesses and professions, told Arab News on condition of anonymity.
He informed that his FBR unit had ensured that the ill-gotten criminal proceeds could not be stashed in real estate, gold or other precious metals and stones.
“We have completed all the action plans and the FATF has also recognized it,” he continued. “Now it is entirely up to them as to what they decide in the meeting.”
The FATF plenary will be held on October 20-21. It will be attended by the delegates representing 206 members of the Global Network and observer organizations, including the International Monetary Fund, United Nations, World Bank, Interpol and Egmont Group of Financial Intelligence Units.
In June this year, the global watchdog recognized Pakistan’s progress on implementing the 34-point action plan, though it continued to keep the country on the grey list while mentioning an onsite inspection to verify the country’s progress.
A 15-member joint delegation of the FATF and its Sydney-based regional affiliate — Asia Pacific Group — paid the visit to Pakistan between August 29 and September 2 to verify its compliance with the action plan.
“From our perspective, the onsite visit was successful,” the FBR official said.
The Pakistan foreign office spokesperson, Asim Iftikhar, did not respond to a telephone call and text message by the time the story was filed.
Another official of the Financial Monitoring Unit (FMU), who supervised the implementation of the 34-point action plan, cautiously told Arab News the plenary would make the final decision on the issue by Friday.
“Things are in process at the moment,” Samina Chagani, deputy-director at the FMU, said. “We have done our job and things will now be discussed at the plenary.”
She also advised to wait “until the final announcement by the FATF” on Friday.
In June, Pakistan said it was “one step away” from exiting the grey list after the successful completion of the action plans.
“The successful completion of the action plans and its formal endorsement by FATF means that Pakistan has come to one step away from exiting from the grey list,” state minister for foreign affairs Hina Rabbani Khar, who is also the chair of Pakistan’s National FATF Coordination Committee, said at a media briefing.
Economists and experts said that Pakistan’s removal from the FATF watchlist could help the country attract foreign investment in different sectors if a proper strategy was adopted.
“This will be positive news for the investors,” Dr. Salman Shah, a senior economist and former adviser to the government, told Arab News. “But this is unlikely to have any immediate, short-term impact on our economy because some other irritants like political instability still exist to put the investors off.”
He said that a “negative irritant” would be abolished with the removal of the country from the FATF’s grey list and “this will help bring foreign inflows in the long-term.”
Pakistan hopeful to exit global dirty money watchdog’s grey list on Friday – officials
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Pakistan hopeful to exit global dirty money watchdog’s grey list on Friday – officials
- The Financial Action Task Force will announce its decision after discussing Pakistan’s implementation of 34-point action plan
- Experts say they don’t see immediate positive impact on the country’s economy, though exiting the list may boost foreign inflows
Islamabad says has evidence Kabul ‘complicit’ in cross-border attacks by Pakistani Taliban
- Pakistan has struggled to contain militancy in its western provinces bordering Afghanistan since November 2022
- Ambassador Munir Akram says Pakistani Taliban emerging as umbrella for “regional terrorist groups” in Afghanistan
ISLAMABAD: Pakistan’s United Nations Ambassador Munir Akram has said that Islamabad has evidence of Kabul being “complicit” in cross-border militant attacks in Pakistan, the country’s mission to the UN announced on Tuesday, warning that surging militancy in Afghanistan poses security dangers for its immediate neighbors.
Akram’s statement at the UN comes amid Pakistan’s struggles to contain rising militancy in its northwestern Khyber Pakhtunkhwa (KP) province since November 2022, when a fragile truce between the state and the Tehreek-e-Taliban Pakistan (TTP) or the Pakistani Taliban, collapsed. Pakistan says the takeover of Kabul by the Afghan Taliban in 2021 has emboldened the group as it is able to operate out of and launch attacks from safe havens in neighboring Afghanistan, whose government denies the charges.
At a meeting of the UN Security Council on Afghanistan’s security, Akram said the TTP is the “largest designated terrorist organization operating from Afghanistan” with an estimated 6,000 fighters. Akram said that through safe havens close to the border with Pakistan, the TTP has conducted numerous attacks against Pakistani soldiers, civilians and institutions resulting in “hundreds of casualties.”
“We have evidence that the Kabul authorities have not only tolerated but are complicit in the conduct of the TTP’s terrorist cross-border attacks,” Akram said according to a statement by Pakistan’s Permanent Mission to the UN on Mar. 10.
He said the TTP is collaborating with other “terrorist groups” present in Afghanistan, such as the separatist Baloch Liberation Army (BLA) and its Majeed Brigade unit, reiterating that they seek to destabilize Pakistan and disrupt its economic cooperation with China.
The BLA is the most prominent separatist militant outfit in Balochistan, Pakistan’s largest province by land but its poorest by almost all economic indicators. The outfit has launched attacks against Pakistan’s security forces and targeted Chinese interests in Balochistan and Karachi frequently in the past. The BLA accuses Pakistan’s federal government and China— which has invested in Balochistan through an infrastructure network— of denying the locals a share in the province’s natural resources. Both governments deny the allegations and say they are working for Balochistan’s development.
Without naming India, Akram said the TTP also receives support from Pakistan’s “principal adversary.”
“TTP, perceived as enjoying Kabul’s patronage, is fast emerging an umbrella organization for regional terrorist groups whose objectives are to undermine the security and stability of all of Afghanistan’s neighbors,” he said. “Given its long association with Al-Qaeda, the TTP could pose not only a regional but a global terrorist threat.”
He pointed out the humanitarian crisis in Afghanistan following the withdrawal of American forces from the country, adding that aid for the 20 million people in Afghanistan should be “unconditional and generous.”
“Pakistan supports the call to unfreeze the assets of Afghanistan’s Central Bank,” he said. “This will revive the banking sector and end the cash transfers which are partially responsible for money flowing into the hands of terrorists.”
Akram concluded his statement by saying that the destinies of Pakistan and Afghanistan are intertwined via shared bonds of history, geography, ethnicity, language, faith and culture.
“We are steadfast in our commitment to support all possible efforts at the bilateral, regional and global level to achieve peace, stability and development in Afghanistan,” he said. “After 40 years of conflict, the people of Afghanistan deserve no less.”
Pakistan, India among countries suffering from world’s most polluted air— report
- Only 17 percent of global cities met WHO air quality standard, says Swiss monitoring firm IQAir
- Pakistan has been ranked third in air pollution rankings behind Bangladesh and Chad
SINGAPORE: Only seven countries met World Health Organization (WHO) air quality standards last year, data showed on Tuesday, as researchers warned that the war on smog would only get harder after the United States shut down its global monitoring efforts.
Chad and Bangladesh were the world’s most polluted countries in 2024, with average smog levels more than 15 times higher than WHO guidelines, according to figures compiled by Swiss air quality monitoring firm IQAir.
Only Australia, New Zealand, the Bahamas, Barbados, Grenada, Estonia and Iceland made the grade, IQAir said.
Significant data gaps, especially in Asia and Africa, cloud the worldwide picture, and many developing countries have relied on air quality sensors mounted on US embassy and consulate buildings to track their smog levels.
However, the State Department has recently ended the scheme, citing budget constraints, with more than 17 years of data removed last week from the US government’s official air quality monitoring site, airnow.gov, including readings collected in Chad.
“Most countries have a few other data sources, but it’s going to impact Africa significantly, because oftentimes these are the only sources of publicly available real-time air quality monitoring data,” said Christi Chester-Schroeder, IQAir’s air quality science manager.
Data concerns meant Chad was excluded from IQAir’s 2023 list, but it was also ranked the most polluted country in 2022, plagued by Sahara dust as well as uncontrolled crop burning.
Average concentrations of small, hazardous airborne particles known as PM2.5 hit 91.8 micrograms per cubic meter (mg/cu m) last year in the country, slightly higher than 2022.
The WHO recommends levels of no more than 5 mg/cu m, a standard met by only 17 percent of cities last year.
India, fifth in the smog rankings behind Chad, Bangladesh, Pakistan and the Democratic Republic of Congo, saw average PM2.5 fall 7 percent on the year to 50.6 mg/cu m.
But it accounted for 12 of the top 20 most polluted cities, with Byrnihat, in a heavily industrialized part of the country’s northeast, in first place, registering an average PM2.5 level of 128 mg/cu m.
Climate change is playing an increasing role in driving up pollution, Chester-Schroeder warned, with higher temperatures causing fiercer and lengthier forest fires that swept through parts of South East Asia and South America.
Christa Hasenkopf, director of the Clean Air Program at the University of Chicago’s Energy Policy Institute (EPIC), said at least 34 countries will lose access to reliable pollution data after the US program was closed.
The State Department scheme improved air quality in the cities where the monitors were placed, boosting life expectancy and even reducing hazard allowances for US diplomats, meaning that it paid for itself, Hasenkopf said.
“(It) is a giant blow to air quality efforts worldwide,” she said
13 women-led startups graduate from program by Pakistan’s largest digital bank
- Incubator program equipped women with skills, financial literacy and tools to upscale startups, says Mobilink Bank
- Pakistani startup Ecobricks bags “Best Startup Award” while Recycle Bin, EcoGrow each won Innovation Challenge
ISLAMABAD: Thirteen women-led startups recently graduated from an incubator program offered by Pakistan’s largest digital microfinance bank, equipping them with skills, financial literacy and the tools to upscale their enterprises, Mobilink Bank said in a statement this week.
International and local rights groups have spoken out against women being marginalized in conservative Pakistan, where they are often subjected to gender inequality, suffer from lack of work opportunities, face violence and sexual abuse.
A graduation ceremony of Mobilink Bank’s ‘Women Inspirational Network (WIN) Incubator Program’ was held in Islamabad on Saturday, Mar. 8, on the occasion of International Women’s Day. The event was attended by key stakeholders, industry leaders, businesswomen, partner organizations and media representatives, Mobilink Bank said in a statement on Monday.
“As a future-ready bank, we’re not just providing tools and opportunities but paving the way for lasting change,” Haaris Mahmood Chaudhary, chief executive officer and president of Mobilink Bank, said in a statement. “When a woman rises, she lifts her family and community with her.”
Pakistani startup Ecobricks received the “Best Startup Award” and a prize of Rs1 million ($3,573), while Recycle Bin and EcoGrow were each awarded Rs500,000 ($1,786) as winners of the Innovation Challenge.
“The awards recognized promising ideas and provided crucial financial support to fuel these businesses’ continued growth and success,” the bank said. “The bank also announced the launch of the program’s second cohort to continue nurturing a thriving ecosystem for women-led businesses.”
Pakistan’s foreign secretary Amna Baloch was the chief guest at the event. She described the incubator program as a “resounding success.”
“The stories of these women inspire hope and motivate others to take the reins of their lives into their own hands,” Baloch said in a statement.
Pakistan oil regulator in crosshairs of refineries, marketing firms over ‘take or pay’ clause
- OMCs strongly oppose proposal due to fear of liquidity crises, supply disruptions and potential market exits
- Refineries say oil marketing firms failing to lift product disrupts operations, threatens supply chain stability
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) said this week it would mediate between refineries and Oil Marketing Companies (OMCs) to reach a “mutually agreeable” resolution on differences over the authority’s proposal to impose a “take or pay” clause in purchase agreements with refineries, which OMCs argue would unfairly burden them.
Pakistan has five oil refineries that process crude oil to produce refined petroleum products. Around 30 OMCs are licensed by the Oil and Gas Regulatory Authority (OGRA) to ensure the availability of petroleum products in the country.
A conflict emerged between local oil refineries and OMCs over OGRA’s proposal to include a take or pay clause in Sales Purchase Agreements (SPAs), with OMCs strongly opposing the move fearing liquidity crises, supply disruptions and potential market exits. Under the new contracts, oil marketing companies would have to pay at least cost to refineries if they are unable to pick up their allocated quantities of product.
The chairman of the Oil Marketing Association of Pakistan (OMAP), a body representing two dozen small and medium-sized Oil Marketing Companies (OMCs), wrote a letter to OGRA Chairman Masroor Khan this week to formally oppose the proposed clause, saying it would serve the interests of refineries and large OMCs at the expense of smaller players, further consolidating the monopolistic control of big fish in the oil sector.
OGRA spokesperson Imran Ghaznavi told Arab News refineries and OMCs had been asked to enter into written sale and purchase contracts.
“The take or pay clause means if an OMC does not buy the contracted quantity, it will still have to pay the purchase price or a penalty and vice versa,” he said.
OMAP chairman Tariq Wazir Ali told Arab News on Monday the body had “expressed our grave concerns regarding the proposed imposition of the take or pay clause in the SPAs between refineries and OMCs as it poses significant risks to the financial sustainability of OMCs.”
He said imposing a take or pay clause would hamper competition, discourage new entrants, and ultimately harm the overall efficiency of the petroleum supply chain. He also said the proposed clause overlooked refineries’ opportunistic behavior as they often withheld supply when prices were expected to rise, forcing OMCs into costly imports, and offloaded maximum stock when prices fell, causing financial losses to OMCs.
Given these circumstances, it was unreasonable to expect OMCs to bear inventory losses while refineries remained insulated from the market’s volatility, Ali said.
“The proposed mechanism must be accompanied by a robust enforcement framework ensuring that refineries adhere to the same rules of fair play and supply commitments, regardless of market price trends,” he added, urging OGRA to convene an inclusive consultative meeting with equal representation of all stakeholders, including small and medium OMCs, before finalizing a decision.
“MUTUALLY AGREEABLE CONTRACTS“
The conflict has emerged after five leading oil refineries wrote a letter to the OGRA chairman, arguing that OMCs had frequently failed to pick up agreed quantities of High-Speed Diesel (HSD) and Motor Gasoline (MOGAS), which had disrupted refinery operations and threatened supply chain stability. The refineries said while they maintained commercial agreements with OMCs, it was OGRA’s responsibility to enforce compliance with these contracts.
The refineries pointed to Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules 2016, which mandates that local production must be prioritized before allowing imports. Keeping this in mind, they have supported OGRA’s suggestion of introducing a take or pay clause to ensure product uplift but say it should be implemented through mutual agreement and strict regulatory oversight.
“The engagement sessions with the OMCs will start soon,” OGRA spokesperson Ghaznavi said, “and OGRA will, in the best national interest and for achieving efficiency in the oil supply chain, mediate between refineries and OMCs for a mutually agreeable sale and purchase contracts.”
Pakistan launches first dematerialized ID card on silver jubilee of database authority
- Digital Pakistan initiative aims to expand knowledge-based economy, spur socio-economic growth using digital technologies
- Pakistan has made considerable progress in its digital transformation journey with rapid expansion of mobile broadband networks
ISLAMABAD: Pakistan’s National Database and Registration Authority (NADRA) marked its silver jubilee on Monday, launching the country’s first dematerialized ID card to commemorate 25 years in legal identity management and national database integration.
The launch of the new card is part of the government’s vision of a Digital Pakistan, where citizens will have digital certificates instead of material ID or, at least, in addition to material ones.
“Federal Minister for Interior and Narcotics Control Syed Mohsin Raza Naqvi commended the launch of the dematerialized ID as a step toward digital identity,” NADRA said in a statement.
“With the launch of this feature in the Pak ID Mobile Application, citizens will no longer need to carry physical ID cards. Moreover, digital verification systems will soon be implemented to facilitate authentication for various services under the World Bank-funded Digital Economy Enhancement Project.”
A pilot project for the fully digital identity will be launched on Aug. 14, 2025 to coincide with Pakistan’s Independence Day.
Pakistan has made considerable progress in its digital transformation journey with the rapid expansion of mobile broadband networks over the last decade. Today, nearly 80 percent of the adult population lives in areas served by mobile broadband (3G or 4G) networks, compared to 15 percent in 2010. But experts say more work must be done to ensure that connectivity reaches everyone, as only 22 percent of the population is subscribed to mobile Internet.
To this end, Digital Pakistan is a flagship initiative of the government to expand the knowledge-based economy and spur socio-economic growth using digital technologies.
“The vision with regards to Digital Pakistan Policy is to become a strategic enabler for an accelerated digitization ecosystem to expand the knowledge based economy and spur socio- economic growth,” according to a government policy document outlining the strategy.
