IMF, World Bank To Continue Downgrading Pakistan As It Fails To Complete 25 Of 27 FATF Action Points

In what could make the financial situation of Pakistan more precarious, the multilateral lenders like the International Monetary Fund (IMF), World Bank and the European Union may continue downgrading Pakistan as the country has failed to complete 25 of the 27 action points given by the Financial Action Task Force (FATF) to check terror funding, reports Tribune India.

Pakistan had been placed in the ‘Gray’ list of the FATF in June 2018 and was given a 27-point action plan by the terror financing watchdog to check funding to terrorist groups such as Lashkar-e-Toiba (LeT), Jaish-e-Mohammed (Jem) and frontal groups like Jamat-ud-Dawah and Falah-e-Insaniat Foundation.

The plan was reviewed in October 2018 in the FATF plenary and for the second time in February 2019, when the country was again put in the ‘Gray’ list after India submitted new information about Pakistan-based terror groups, reports Times of India.

However, due to its reported failure in the implementation of the action-plan, Pakistan is in deep trouble in the FATF meeting that began on Sunday (16 June) in Florida in the United States, people aware of the development were cited as saying.

“It (Pakistan) has been unable to complete 25 of its 27 action points. It has one last chance, till its 15-month deadline ends in October 2019, when the FATF Plenary will be held,” one of them was quoted in the report as saying.

As per the report, Pakistan continuing to be in the ‘Gray’ list means its downgrading by the IMF, World Bank, EU, Asian Development Bank (ADB) and reduction in risk rating by Moody’s, S&P and Fitch. This will add to the problems of Pakistan, which is seeks financials aids from all possible international avenues.