Lot to be done to satisfy FATF: Asad.

Byline: Imran Ali Kundi

ISLAMABAD -- Finance Minister Asad Umar said yesterday that Pakistan will have to do a lot in next three months to remove its name from Financial Action Task Force (FATF)'s grey list.

He informed the National Assembly Standing Committee on Finance and Revenue that government had proposed amendments in four laws including Benami Act, Customs, Anti Money Laundering Law and Federal Investigation Agency (FIA), which would be presented in parliament for approval. The government will have to take action in next three months as the FATF next round will be held in May 2019, he added. 'The next stage is related to apprehensions and sentences, which is difficult task,' he said.

'FATF has expressed satisfaction with the National Risk Assessment Report that Pakistan had submitted till January. However, the major issue FATF had was Pakistan not declaring banned outfits high risk. Now, we have fulfilled that condition.'

The finance minister said that before FATF board meeting he received calls from different friendly countries informing him that India had been going to individual companies and lobbying against Pakistan. 'India is lobbying against Pakistan in FATF through various companies, as New Delhi wants to blacklist Islamabad as early as possible. That is why we have demanded the FATF to revoke India's position as co-chair of its Asia-Pacific Joint Group in light of this abuse of position.'

He informed the committee that there was no major devaluation of currency in sight. He further informed that talks with International Monetary Fund (IMF) were continuing and differences on issues had narrowed down.

Umar rejected the impression that multilateral sources had slashed funding for Pakistan. The inflows from multilateral sources had estimated to US$ 5.6 billion which the government was committed to achieve by the end of June 2019 backed by portfolio reviews and stronger monitoring measures taken by the government. Actual inflows from multilateral and bilateral sources in FY2017-18 were US$4.784 billion.

The finance minister admitted that inflation had increased which was worrisome for the government. He clarified that inflation had increased by only 2 percent during first six months of the incumbent government as against 5.5 percent increase in first six months of PML-N's tenure and 10 percent increase in initial months of the PPP. He explained that inflation had enhanced due to increase in prices of electricity and gas. The...