The Financial Action Task Force (FATF), a global body that combats terrorist financing and money laundering, met in Paris amidst reports that the US with support of some European allies was trying to place Pakistan on a list of countries that financially support terrorism.
Pakistan's Foreign Minister Khawaja Asif took to social media early this morning to announce that "our efforts paid" and "no consensus for nominating Pakistan" for the watch-list was reached at the conclusion of meeting on the US-led motion.
Asif said Pakistan was "grateful to friends who helped" to avoid being placed on the watch-list.
Member states of the FATF have been meeting this week in Paris, where it was expected that they would decide on the US-led motion -- backed by the UK, France and Germany -- to have Pakistan added to the 'grey list' of countries not doing enough to comply with terrorist-funding regulations.
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The meetings involve more than 700 delegates from the 203 jurisdictions of the FATF Global Network, as well as the UN, IMF, World Bank and other partners.
Pakistan suspects India's hand behind the US-sponsored resolution as Ismail recently lamented that the FATA was used for political purposes, the report said.
Last week, Foreign Office spokesman Dr Mohammad Faisal had expressed serious concerns about the efforts by some members of the FATF to include it in the grey list.
"Pakistan has serious concerns over and objections to the introduction of this new procedure, which is unprecedented and in clear violation of established rules/practices of FATF. Since 2015, time and again the goal posts have been shifted for reporting by Pakistan," he had said.
Faisal said Pakistan was placed in the grey list in 2012 but was removed in 2015 after strenuous efforts to address the concerns of the group.
"After the exit (in 2015), the FATF referred Pakistan to APG (Asia-Pacific Group) due to residuary concerns regarding implementation of UNSCR 1267 sanctions on some entities i.e. (Lashkar-e-Taiba, JuD, and FIF)," he said.
He said Pakistan has been continuously reporting to APG on these "residual concerns".
According to the financial sector experts, any move to place Pakistan on the watch-list would enhance scrutiny level of the financial transactions that the country's banking sector would undertake with the rest of the world.
This will increase the cost of opening letter of credits (LC) for trade purposes. The negative decision by the FATF will have the force to affect the international credit ratings, which will in turn increase cost of borrowings for the government.
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