EU and FATF issues

Pakistan has been making steady progress to implement the action plans of the Financial Action Task Force (FATF). Though the European Union has welcomed this progress, we are yet to see this praise translate into concrete action by facilitating Pakistan’s removal from the infamous grey list. The EU has particularly lauded the adoption of the Protection of Journalists and Media Professionals Bill by parliament. The sixth round of the EU-Pakistan Strategic Dialogue has concluded, and the joint communique inter alia touched upon the FATP actions plan. Regional cooperation and security also came under discussion. The EU has been concerned about human rights and fundamental freedoms by focusing on freedom of religion and belief, interfaith harmony, religious tolerance and peaceful coexistence and rights of minorities. These are all serious issues and to a great extent our relations with the Western world and to some extent with the FATF depend on how we tackle these issues in Pakistan. A major challenge for Pakistan is not only to get out of the grey list, but also to ensure a continuation of the GSP-Plus status.

The EU and FAFT have concerns that are not exactly the same but there is some overlap in them. While the EU is more concerned about the implementation of 27 international conventions on human rights, labour rights and protection of environment and good governance that are linked to it, the FATF has a focus on terrorist organisations, terror financing and related issues such a money laundering. Pakistan also needs to respond to the EU concerns about the misuse of the blasphemy laws in the country. Despite Pakistan’s progress, there are still matters that we need to address on a priority basis if we hope to get positive responses from the EU and FATF. The Anti-torture Bill and other human rights related legislations are still pending before parliament.

Afghanistan has also emerged as a hot topic for discussion as Pakistan has been advocating for an immediate resumption of aid to the new Afghan government to avert an impending crisis of food that may result in widespread hunger and human tragedy. While Pakistan has been encouraging the EU to engage with Afghanistan the European response to the new Taliban government has been cautious and slow. Drug trade and the threat of terrorism are major causes of concern for the EU and other Western countries. Since Pakistan itself is facing an acute liquidity challenge and has been looking towards the IMF and Saudi Arabia for help in loans, it is not in a position to reach out to the Afghan Taliban government with any major financial assistance. This situation calls for a more circumspect approach by all concerned – especially by the EU and FATF which should facilitate Pakistan’s removal from the grey list. Pakistan’s progress is notable, and it must not go unappreciated for long. Pakistan also needs to be quick and responsive to allay all their concerns; a laggard attitude may once again land us in financial trouble which we can hardly afford at the moment.