The global money laundering and financing watchdog Financial Action Task Force (FATF) has removed Pakistan from its list of countries under “increased monitoring” after four years.
Pakistan has been on the “grey list” since 2018 because of “strategic counter-terrorist financing-related deficiencies”.
After placing the country on the grey list in 2018, FATF gave Pakistan a 27-point action agenda, which was later increased to 34-points, related to money laundering, terrorist financing, and action against armed groups and individuals.
The removal decision was announced by FATF President T Raja Kumar at the end of a two-day meeting in Paris, France.
According to Kumar, “Pakistan had addressed technical deficiencies to meet the commitments of its action plans.
Earlier, a FATF technical team had travelled to Pakistan in late August and the visit was declared a “success” by Pakistan’s foreign office, which said it expected a “logical conclusion” at the next evaluation meeting in October.
The decision comes at a time when Pakistan’s credibility on the global market has taken a pounding because of its precarious economic situation.
Earlier on Friday, global ratings agency Fitch cut Pakistan’s sovereign credit rating, blaming its funding situation as well as declining foreign reserves.
Ratings agency Moody’s Investor Service also cut Pakistan’s sovereign credit rating earlier in October, citing the government’s declining foreign reserves and growing economic stress in the aftermath of devastating floods earlier this year.