WASHINGTON – The grey-listing of a country by the global watchdog FATF hasno direct consequences for its ability to borrow from the IMF, a topofficial said.

The remarks comes days after the Paris-based 37-nation Financial ActionTask Force (FATF) placed Pakistan on the grey list last month.

“Any decision to list a country as a jurisdiction with strategic AML/CFT(Anti-Money Laundering/Combating the Financing of Terrorism) deficienciesis the responsibility of the FATF only.

I would note that a grey-listing has no direct consequences for a membercountry’s ability to borrow from the IMF,” Tao Zhang, IMF deputy managingdirector, told PTI.

“Pakistan completed an IMF-supported programme under the Extended FundFacility in September 2016. While the programme was successful in itsobjective of macroeconomic stabilisation, and some progress was made onstructural reforms, the agenda remained incomplete,” Zhang said.

Early this week, the IMF noted with concern the weakening of themacroeconomic situation, including a widening of external and fiscalimbalances, a decline in foreign exchange reserves, and increased risks toPakistan’s economic and financial outlook and its medium term debtsustainability.

In this context, they urged a determined effort by the authorities torefocus near term policies to preserve macroeconomic stability.