‘Too early to celebrate,’ says Hina as Pakistan one step away from exiting FATF's grey-list

Islamabad: Minister of State for Foreign Affairs Hina Rabbani Khar Saturday said that it would be “too early to celebrate” the announcement made by the Financial Action Task Force's (FATF) as Pakistan is just “one step away” from exiting the grey list—stating that “It's not the end, it’s just the beginning”.

While addressing a press conference here at the Ministry of Foreign Affairs, she said that the ‘good news from FATF will restore confidence in our economy, will give it a much needed boost and would improve the investment climate.’

Hina Rabbani Khar reiterated that Pakistan’s cooperation with the FATF and the international community was grounded in its strategic objective of strengthening its economy and further integration with the global financial system.

“Pakistan’s positive and speedy progress, which paved the way for its exit from the grey list, was greatly appreciated and welcomed by the FATF members,” she added.

State minister stated that no country would want to be in the list because of its repercussions

During the press conference—after leading Pakistan's delegation to the FATF Plenary Meeting in Berlin— she pointed out that the FATF has duly recognized our tremendous progress and commitment to improve our international anti-money laundering and combatting the financing of terrorism and proliferation (AML/CFT) standards. 

She said the 2018 action plan has been closed with no pendency of action on part of Pakistan whilst the action plan of 2021 was completed a year ahead of the prescribed timelines.

As a result of this remarkable achievement, the Minister of State said the FATF has now authorized an onsite visit of its technical team to Pakistan to validate the process of implementation of reforms. It marks the beginning of the end process that will eventually culminate in the exit of Pakistan from the grey list.

She said we are working closely with the FATF to arrange the on-site visit at mutually convenient dates, with a view to conclude the entire process at the earliest and before the next FATF plenary in October this year.

Khar stressed that Pakistan's cooperation with the FATF and the international community is grounded in our strategic objective of strengthening our economy and further improving its integration with the international financial system. 

The Minister of State also acknowledged the tireless efforts put in by all the teams to achieve the strenuous, difficult and complicated targets. She said this was indeed a whole of the country response as multiple ministries, departments and agencies at all levels of the government contributed to this national cause.

She also conveyed her gratitude to the international partners and friends for their understanding, support and cooperation throughout the process. 

“Pakistan is in a position that it will not only sustain its trajectory of reforms into the future but can also provide guidance and technical support to other countries in this area,” she stated, adding that country earned this place through its consistent work. 

“We have not only honored our commitments but over performed,” said Hina.

The onsite inspection by FATF in Pakistan would be done before October, and a formal announcement on Pakistan’s removal would follow.

The Paris-based group added Pakistan to the list in 2018. The “gray list” is composed of countries with a high risk of money laundering and what FATF considers terrorism financing.

At the time, Pakistan avoided being put on the organisation’s “black list” of countries that do not take adequate measures to halt money laundering and terrorism financing. The designation severely restricts a country’s international borrowing capabilities.