Will Pakistan Escape the FATF Grey List in 2021?

Pakistan will not be blacklisted but remains on the FATF grey list. The current government's lack of urgency in removing the country from the grey list has raised concerns. While progress has been made, institutions supporting terrorists continue to operate, making it unlikely for Pakistan to fully escape the grey list in the near future.

Current Status and Future Outlook

Till it stops supporting terrorists and their organizations, Pakistan will remain in the grey list indefinitely. The Financial Action Task Force (FATF) President Dr Marcus Pleyer has reiterated the need for Pakistan to complete its action plan. However, the ongoing 'great game' between superpowers and domestic political challenges within Pakistan create obstacles to effective implementation.

Despite completing 90 out of 27 FATF action assignments, the FATF has decided to keep Pakistan on the grey list, with a review scheduled for June 2021. The likelihood of Pakistan permanently escaping the grey list is low, as national and international factors remain in place.

The Role of External Influences

While Pakistan has made significant progress, including improving its law and order situation, the continued existence of anti-Pakistan groups and international pressure from organizations influenced by the United States poses a significant challenge. These factors have limited Pakistan's ability to enjoy the benefits of being off the grey list.

Critical Points and Obstacles

Different experts offer varying views. Some argue that three specific points are not significant barriers for Pakistan, while others emphasize the need for a serious and consistent approach to address the root causes of being on the grey list. The FATF is often seen as a tool used by powerful nations to control offshore financial activities, and Pakistan’s current position reflects its complex geopolitical and domestic challenges.

Conclusion

Pakistan faces significant challenges in escaping the FATF grey list. Efforts must be focused on eliminating support for terrorist organizations, addressing the 'great game' dynamics, and resisting external pressure. Only a comprehensive and sustained strategy can ensure a positive outcome for Pakistan's financial standing in the international community.