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Pakistan’s removal from FATF Grey List

Karachi, October 26, 2022: The Employers’ Federation of Pakistan (EFP) lauds the decision of the Financial Action Task Force (FATF) to remove Pakistan from the Grey List. Ismail Suttar, President, Employers’ Federation of Pakistan (EFP), stated “FATF’s decision to remove Pakistan from the Grey List will have a very positive impact on Pakistan’s economic outlook. This step was crucial in the journey of Pakistan’s economic revival and thus the federation along with employers in the country welcome this decision.”

In a statement, Ismail Suttar said that Pakistan has been removed from the Grey List after four years of continuous effort by the government and institutions to crack down on money laundering and terror financing. This action will help the country to gain a boost in its economic reputation. In contrast to Moody’s unorthodox decision to downgrade the credit ratings, this decision by FATF will reap many benefits for Pakistan’s progress and economic reputation.

“This exit from the FATF Grey List has led to a condition being met that was made by the International Monetary Fund (IMF) in the recent $6 billion bailout. Governments, Institutions, and International Investors will be open to investing in Pakistan as it is now considered a country compliant with FATF’s regulations and guidelines”, he said.

Suttar was of the view that an exit from the Grey List also means increased facilitation of Exports, Imports, and access to private funds and equity. It will also ease the opening of LCs as more international correspondent banks would be open to partnering with Pakistan based banks.

“Our financial Markets and currency are expected to react positively and remain bullish after this decision. Removal from the Grey List also highlights the importance of a re-rating by several credit rating agencies in concern to Pakistan’s future economic outlook. Pakistan is expected to attract more Foreign Direct Investment (FDI). As a result, a removal from the Grey List has opened several avenues for Pakistan as investors/banks will be open to doing business with Pakistan as the associated reputational risk will be minimal.” Ismail Suttar added that The Employers’ Federation of Pakistan (EFP) is committed to working with Pakistan’s employers for the country’s continual progress. This decision by FATF is greatly welcomed and is a stepping stone for economic prosperity in Pakistan.

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