Out of the grey

Pakistan coming off the Financial Action Task Force’s (FATF) grey monitoring list bodes well for the country’s beleaguered economy. Even more importantly, it is Exhibit A of how Pakistanis can move mountains when they bury their differences and set their sights on a common cause. Diverse institutions and departments – from the central bank to the security agencies – worked hand in hand in a sustained, multiyear effort to address every last one of the FATF’s action items. The policy thrust remained constant under Prime Minister Shehbaz Sharif. Foreign Minister Bilawal Bhutto and his team put in a masterful performance in the run-up to the delisting, countering India propaganda efforts aimed at hurting Pakistan’s position. But friendly countries like Turkey, Malaysia, and in particular China yet again stood by Pakistan, and New Delhi’s nefarious plans fell flat.

In any case, FATF’s nod means Pakistan is now compliant with the gold standard in anti-money laundering/combating the financing of terrorism (AML/CFT). This has clear benefits in terms of how the Pakistani markets are perceived by investors. The FATF takes pains to explain there is no call for enhanced due diligence measures for countries and territories on the grey list, but we all know perception factors majorly into the behaviour of financial markets. And Pakistan’s economy, battered by unprecedented floods this monsoon, certainly needed this leg up, especially in the wake of the recent dilution of Pakistan’s credit standing by rating agencies.

PM Sharif has marked the occasion by giving a shoutout to all those who contributed to Pakistan’s determined and sustained multiyear effort to chisel Pakistan’ legal, administrative, and regulatory frameworks into shape. He is in particular appreciative of the roles played by Foreign Minister Bhutto and COAS General Qamar Javed Bajwa. The foreign minister has sent out his own felicitations to the nation, crediting the success to strong political ownership across the political spectrum. On the external front, the development has overjoyed Pakistan’s friends. The US has hailed the FATF move and appreciated Pakistan’s efforts and improvement. But it seems that unity in the face of this challenge was a prerequisite to all the goodwill and support Pakistan has received. Unity is the charm. Without the hard work that was made possible by our national cohesion over the issue, none of this would matter.

Remarkably, this unity was achieved while the country was passing through probably the worst political polarization of its history. Which is to say, none of the political players of the country lost any brownie points, any of their ideological edge, while collaborating on issues surrounding AML/CTF. Does this look like what some politicians describe as a 'charter of economy'? Very much so. Why, then, has the initiative not been taken more seriously, especially when its original proponent is now the prime minister? PM Sharif and his cabinet would do well to prioritize the matter. Parliament has a duty here to bring home to all sides of the political arena that we are free to thrash out our differences any which way only as long as the country is economically afloat. This is why nobody can be allowed to hold the country's economy hostage to their petty political considerations. Consensus on the country’s broad economic direction and healthy fundamentals cannot be delayed anymore.