ISLAMABAD – Pakistan has shifted its economic reliance on Beijing fromWashington DC, therefore, it might face Washington DC’s wrath as a resultof a looming trade war between United States and China, the two economicgiants on the world map.
The Financial Action Task Force (FATF) has already placed the Islamabad onthe global terror financing watch-list from June 2018 onwards, soIslamabad’s growing business and political relations with Beijing mightprompt the world super power to continue highlighting the deficiencies inthe Anti-Money Laundering and Countering of Terrorist Financing (AML/CFT)framework of Pakistan.
Despite enactment of legislation, issuance of regulations and guidelines bythe State Bank and the Securities Exchange Commission to the financialsector and establishment of the Financial Monitoring Unit etc, WashingtonDC might continue to label Pakistan more loudly and forcibly as a countrywhere terrorist outfits are still allowed to raise funds.
As China and Pakistan have cemented business ties under the ongoing $62billion China-Pakistan Economic Corridor (CPEC), new protectionist measuresand tariffs might force Beijing to revisit its global investment priorities.
Resultantly, flow of funds from Beijing to CPEC might be hampered and delayChina’s long-dreamt geopolitical goal of emerging as an alternate powercentre to US by expanding its economic footprint across regions.
Pakistan would hence suffer because its infrastructure-laying plans underCPEC would also be delayed due to Beijing’s compounding difficulties andtrade worries.
And last but not least, Pakistani professionals might of course find ithard to hunt employment opportunities in the United States while thosealready working there might find their jobs being threatened.