No Funds For Future
should be noted that if the cash-strapped nation continues to remain in the grey list, it would become very difficult for the Imran Khan government to get financial aid from global money lenders, including the International Monetary Fund (IMF) and World Bank, further making a more precarious situation for its plunging economy. By making its warning
to Pakistan public, the FATF has given notice to the global financial institutions that they need to prepare to red flag the jurisdiction and ready their systems for the eventuality in February 2020.
Way Ahead For Pakistan
Although the FATF is currently
headed by China who is an all-weather ally of Pakistan still the evidence against Pakistan is so strong that even China couldn’t save it from remaining in the ‘Grey List’ .Chances of Pakistan exiting the Grey List in the next few years are
now reduced to nil. The possibility of a formal Black Listing in February 2020 is now highly probable. The moment a nation gets put in the Black List, it invites immediate economic sanctions and punishment – borrowing will become difficult, non-banking
financial institutions will come under financial scrutiny and bailouts and IMF packages will become harder to access. Only two countries, North Korea and Iran, are on the FATF blacklist, which severely crimps their access to the global financial system as
well as international aid.