Economic team to brief PM Khan about progress on FATF's recommendations

PM Khan and his team are expected to formulate a strategy for improving the progress within time.

ISLAMABAD (Dunya News) – Prime Minister Imran Khan on Saturday will convene an important meeting of the government’s economic team to examine the overall economic affairs of the state, particularly Pakistan’s position in the grey list of the Financial Action Task Force’s (FATF) Asia Pacific Group (APG) that has given the country the deadline till Feb 2020 to comply with all of its 40 recommendations for the anti-money laundering and combating the financing of terrorism (AML/CFT) system.

The premier will be briefed on the progress being achieved by Pakistan on effectiveness of the anti-money laundering and combating the financing of terrorism (AML/CFT) system.

PM Khan and his team are expected to formulate a strategy for improving the progress within the due time.

This year, Pakistan has made significant improvements in its systems to fight money laundering (ML) and terror financing (TF) as per international standards.

In an exclusive interview with Al-Jazeera TV in September, Prime Minister Imran Khan alleged that New Delhi was trying to bankrupt Pakistan and push it into the FATF blacklist.

The 41-member APG had adopted 3rd Mutual Evaluation Report (MER) on Pakistan during Aug 13-18 meetings in Canberra, Australia, and downgraded the country to “Enhanced Follow-up” category over technical deficiencies to meet normal international financial standards by October 2018.

As a result, Pakistan is now required to submit quarterly progress reports, instead of biannual, to the APG, starting Feb 1, 2020 to show improvements in its technical standards on AML/CFT.

According to a report released by the World Bank Group on Thursday on Ease of Doing Business Index, Pakistan has jumped 28 places from 136 to 108.

That day Prime Minister Imran Khan affirmed that his government has fulfilled another of its manifesto commitments by showing improvement in the ease of doing business.

In a tweet shared on his official Twitter handle, PM Khan expressed the confidence Pakistan will become one of the top places for investment before the end of next year.

He said “Pakistan has achieved the biggest improvement in its history in the World Bank’s Ease of Doing Business rankings.” He said over the last decade Pakistan’s ranking had slipped more than fifty places. Now, we have improved twenty eight places from 136 to 108.

Congratulating his team for the struggle, the prime minister said: “We still have a long way to go.” He further said that before the end of 2020, Pakistan will become ‘one of the top places for investment’.

“Pakistan achieves biggest improvement in its history in World Bank’s Ease of Doing Business Index 2020 rankings. Over last decade, Pakistan’s ranking had slipped more than 50 places. Now we have improved 28 places – from 136 to 108," PM tweeted.

In another positive development that could boost investors’ sentiments towards Pakistan and will allow the debt-ridden state to combat its economic crisis, Pakistan has attained 108th position besides securing a place among top ten global business climate improvers.

Pakistan carried out six reforms in the last one year that helped improving its ranking from 136 to 108, according to the World Bank’s annual flagship report “Ease of Doing Business 2020”, released on Thursday. Last year, Pakistan was ranked 136th among the 190 nations surveyed.

According to the World Bank, the six areas which saw reforms included starting a business, dealing with construction permits, getting electricity, registering property, paying taxes and trading across borders. Pakistan made starting a business easier by expanding procedures available through the online one-stop shop. In addition to improvements in property registration, obtaining a construction permit became easier.

The launching of online portals for new commercial connections made getting electricity easier, and tariff changes are announced in advance. Moreover, tax compliance became easier through online payment modules for value-added tax and corporate income tax. Pakistan made trading across borders easier by enhancing the integration of various agencies into an electronic system and by improving coordination of joint physical inspections at the port.

Since assuming the office, Prime Minister Imran Khan made it amongst his highest priorities to take measures for improving ease of doing business in the country. As a result of the coordinated efforts led by the state’s institutions, Pakistan has been acknowledged by the World Bank among the top global reformers this year.

Pakistan, another top improver, developed an ambitious reform strategy, setting up a national secretariat as well as a prime minister’s reform steering committee to ensure progress, the report acknowledged.