Pakistan has been given a three-month reprieve by a global watchdog over a US-led motion to put the South Asian country on a terrorist financing watchlist, Foreign Minister Khawaja Asif said late on Tuesday. Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the Financial Action Task Force (FATF), a measure that officials fear could hurt its economy.
FATF member states have been meeting this week in Paris, where it was expected that they would decide on a US motion, backed by Britain, France and Germany, to have Pakistan added to the so-called 'grey list' of countries which are not doing enough to comply with terrorist-funding regulations. Asif, who is currently on a visit to Russia, tweeted late on Tuesday that Pakistan's "efforts have paid (off)" during a Feb. 20 meeting on the U.S.-led motion, suggesting there was "no consensus for nominating Pakistan".
He also suggested the meeting proposed a "three months pause" and asked for the Asia Pacific Group, which is part of FATF, to consider "another report in June". Pakistan earlier this year submitted a report about the progress it had made in curbing terrorist financing, but Washington submitted its motion before the Pakistan report could be discussed at the Paris hearing.
"Grateful to friends who helped," Asif added. Two other Pakistani officials confirmed Pakistan had received a reprieve of three months. Washington has been threatening to get tough with Islamabad over its alleged ties with Islamist militants, and last month President Donald Trump's administration suspended aid worth about $2 billion.
Islamabad, which denies assisting militants in Afghanistan and India, has reacted angrily to U.S. threats of further punitive measures. However, Pakistan's government is concerned the FATF decision could hurt its banking sector, causing real financial pain to the economy just as a national election looms.
INP adds: A delegation comprising officials from finance and interior ministries reached Paris earlier Tuesday to plead Pakistan's case at the ongoing meeting of the Financial Action Task Force (FATF) - a global body that combats terrorist financing and money laundering. The delegation, led by Director-General Financial Monitoring Unit Syed Mansoor Shah, and comprising members of the Foreign and Interior ministries, will defend Pakistan's position at the FATF meeting, where a resolution sponsored by the United States and supported by its allies is considering placing Pakistan on a watchlist of countries that financially aid terrorism.
Adviser to Prime Minister on Finance Dr Miftah Ismail has also reached Paris to attend the meeting. Official sources revealed earlier that Ismail visited Germany, the Netherlands and Belgium last week with a view to garnering support against the US move. Sources said of the 35 permanent members of the FATF, only China supports Pakistan whereas the rest are likely to fall behind the US resolution.
Pakistan's international credit rating could suffer a setback as a result of being placed on the list, as several global financial institutions are influenced by the FATF, which includes around 700 members in total, including the United Nations, the European Commission, the International Monetary Fund and the World Bank.
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