LAHORE: Pakistan is facing big challenge as time expires for Pakistan tomeet Financial Action Task Force (FATF) requirements for complying with itsregulations by June.

Islamabad’s recently introduced tax amnesty is being pushed as a majordriving force aiming to end unbridled tax evasion.

Islamabad has been in a quandary since February when it was warned by FATFabout being placed on its ‘grey list’ if it did not in three months carryout action against terror financing and money-laundering.

An article in *Nikkei Asian Review *published on Monday said Islamabad wasunder tremendous international pressure from the US and other Westerncountries to curb money laundering, which would require initiating majoraction on tax evasion.

A European ambassador in Islamabad said “The FATF threat is one of the mostserious to Pakistan in many years. Pakistan has to be seen to have beguntaking action against money laundering and tax evasion.”

FATF deadline for Pakistan to comply with its terror financing and moneylaundering regulations expires next month and it is set to decide whetherto place Islamabad on a greylist or black-list of nations which have beenunable to curb terrorism financing and money laundering.

A senior government official while speaking to *Nikkei Asian Review *statedthe country had to take immediate action considering the deadline of FATFwas about to expire.

He added the authorities need to add more taxpayers to the tax net wouldalso be very important.

However, a president of a private bank in Karachi believes if Pakistan gotplaced on the grey-list it would make it very difficult for the country toborrow on international markets.

He pointed lenders would demand a higher rate of return for a country undercurbs and till there was a drastic development in terms of tax collection,Islamabad would face major issues in paying Chinese debts as well as theircommercial loans in the future. – Agencies