Greylisting versus IMF programme

Greylisting versus IMF programme

One of the major conditions attached to $ 6 billion loan programme of the International Monetary Fund (IMF) is the implementation of 27 points action plan of the Financial Action Task Force (FATF) to get off Pakistan from the greylist by September this year. Speaking at a policy symposium at Sustainable Development Policy Institute, Resident representative Teresa Daban Sanchez drew a subtle linkage between the IMF programme and greylist impact. She said that failure to move out of the FATF greylist could reduce the prospects of access to private financing from global market and urged for political consensus for the implementation of IMF programme.

Building consensus between the ruling and opposition parties during the prevailing atmosphere of polarization on the moving forward across-the-board accountability process seems very difficult. The government on its part is taking administrative and institutional measures to implement the FATF action plan to curb the twin menace of money laundering and choking the sources of terror financing. However, there is dire need of further strengthening the institutional and legal framework to make the anti-money laundering and counter terrorism financing regimes robust and effective. For this purpose a comprehensive legislation is required for which the support of opposition political parties in the parliament is essential. Unfortunately, the top leadership of two major opposition parties is tainted with corruption and money laundering allegations and is facing probes by NAB and trials in courts. The ruling PTI may not be able to build a political consensus on the key components of IMF programme.

Posted in