India recognizes Pakistan’s action against terrorist organizations

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By admin June 11, 2019 17:12

News: India has recently acknowledged that Pakistan has begun taking some action against the terror organizations on the ground.

Details

  • Pakistan is being pursued by the Financial Action Task Force to take action against the terrorist groups operating within the state to avoid being listed in the Blacklist of FATF.
  • Pakistan had already been listed on the ‘grey list’ by FATF in 2018.
  • An official said Pakistani authorities had seized 771 seminaries — educational institutions run by the Lashkar-e-Taiba and its fronts, Jamaat-ud Dawa and Falah-i-Insaniyat, and the Jaish-e-Mohammad.
  • To avoid being put on the blacklist, Pakistan has seized properties associated with terror groups in Pakistan-occupied Kashmir as well.
  • Pakistan was on the “grey list” of countries of risk between 2012 and 2015 as well.

What would blacklisting mean?

  • The FATF blacklist means the country concerned is “non-cooperative” in the global fight against money laundering and terrorist financing.
  • If the FATF blacklists Pakistan, it may lead to the downgrading of the country by multilateral lenders like IMF, World Bank, ADB, EU and also a reduction in risk rating by Moodys, S&P and Fitch. How would it affect Pakistan?
    • Pakistan’s economy is reeling under pressure with low performance in human development indicators like health and education to economic parameters like tax-to-GDP ratio, currency performance, and current account deficit.
    • Its economy survives on bailout packages from the global organizations like the IMF (International Monetary Fund) and the World Bank, and allies like China and the US.
    • The country has received around a dozen bailout packages in the past 40 years.
    • The Imran-led government has obtained $10 billion from countries including the UAE, Saudi Arabia, and China in order to help stabilize foreign exchange, meet its current account deficit and support the rupee.
    • Due to a persistent decline in forex reserves, the rupee has depreciated approximately 30 percent in the past year and Islamabad needs fresh funding to support the currency and forex reserves.
    • The downgrading would push down the economy further.

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admin
By admin June 11, 2019 17:12