Daily Times

Islamabad is in deep trouble as far as the Paris-based most influential Financial Action Task Force is concerned. Great drama unfolded in February’s plenary when Pakistan was once again forced to go under the grey-list knife. This failure to revert to the so-called “white list” is upping the ante on Pakistan. The FATF threats are becoming shriller and meanwhile, the government’s efforts to gain global acceptance turn all the more vigorous. There are now murmurs of yet another set of new legislation in a desperate attempt to comply with the said action plan. The new laws would see dozens of special prosecutors hired to go all-out to probe money-laundering cases. With detailed instructions being given to specialised agencies on forfeiture and management of assets related to terrorism financing, Pakistan is trying its level best to keep up its commitment to FATF’s guidelines. It is saying a firm no to dirty money but is this enough for the international watchdog?

Only last year, we had passed a wide array of bills while trying to “whiten the economy.” The measures ranged from seizure of assets, travel bans and arms embargoes on those designated on the UN-sanctioned list. Yes, there was a hopeful appraisal for the ruling PTI as the financial supervisor heaped praises on Pakistan’s “significant progress.” However, the much-dreaded greylisting continued.

For those wondering why our government appears obsessed with getting off the knife-edge, this loud naming-and-shaming is far more expensive than our fragile wallet can afford to empty. Blacklisting comes with restricted access to international bond markets. The implications for the trade and investment of a quarantined country are just as devastating. Quite appropriately, former Interior Minister Rehman Malik had vociferously protested the greylisting. He had even noted crippling losses to the tunes of $38 billion incurred to Pakistan’s economy because of the time it remained on the notorious list. Yet, the troubles continue.

It goes without saying that the present administration has been the most serious in handling the Democlean sword of being blacklisted. Making extensive efforts to comply with as many as 24 stringent benchmarks is no small feat. Notwithstanding the PTI’s resolve to bid adieu to the blacklist forever, Pakistan needs to show complete compliance to the outstanding standards. It is time to dot all the i’s and cross the t’s when it comes to improving investigations and prosecutions of the alleged extremist groups. However, there is growing frustration in domestic waters against the seemingly neverending conditions. Even those coming to terms with the horrific economic catastrophe if the FATF ostracises Pakistan are now questioning the role of Indian diplomacy. Our next-door neighbour’s strong push to get us isolated in a corner cannot be made light of. But the sad reality remains that beggars can’t be choosers. Pakistan’s pivotal reliance on international finances makes the battle to earn trust worldwide all the more life-threatening. Despite being several pit stations away from the dreaded zone, it cannot do much against the broader community seeing red on its terror-financing reforms. Like it or not, we cannot just sit back and relax. The skipper needs to pull up his socks until the end of this dark, dismal tunnel is reached! *