*Islamabad: *The blacklisting of Pakistan by the Paris-based FinancialAction Task Force (FATF) could have implications for capital inflows to thecountry, according to a report released by the IMF.
The FATF, a global watchdog for terror financing, that kept Pakistan on theGrey List for an extended period till February 2020, had warned in Octoberthat Islamabad would be put on the ‘Black List’ if it did not comply withthe remaining 22 points in a list of 27 questions.
Pakistan submitted a report comprising answers to 22 questions to the FATFon December 6.
“A potential blacklisting by FATF could result in a freeze of capital flowsand lower investment to Pakistan,” said the IMF in its staff-level reportthat was finalised during the visit of the International Monetary Fund(IMF) team to Pakistan.
The IMF programme continues to face significant risks, both from domesticand external factors, the report added.
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External risks include blacklisting by the FATF that could result in afreeze of capital flows to Pakistan, slow progress inrefinancing/re-profiling loans from major bilateral creditors, andincreasing headwinds from a weaker global economic backdrop, the reportsaid.
The IMF report said that Pakistan continues to be included in the FATF’slist of jurisdictions with serious AML/CFT deficiencies.
