Pakistan may seek US intervention for FATF, IMF relief

Islamabad: Pakistan may seek US intervention for relief from the Financial Action Task Force (FATF) and International Monetary Funds (IMF) tough conditions, as both would be reviewing its position in light of the conditions set out by them, said a Cabinet member.

The final meeting of the FATF will be held in October in Paris which will decide whether to keep Pakistan in the grey list or place it out, the member told The News International. "The FATF is going to meet in Paris somewhere in next month of October where it will decide Pakistan's fate. The same month, the IMF will also initiate review of first quarter of Pakistan's output under $6 billion programme loan," he said.

One Economic Minister told The News International that Pakistan subscribed the toughest ever IMF loan programme without negotiations and now the economic managers had started feeling the heat of tough conditions. The IMF asked Pakistan's new economic team after the ouster of former Finance Minister Asad Umar to "take the programme loan with toughest conditions or leave it".

Pakistan has already deposited with the Asia Pacific's Joint Group in Bangkok its compliance report on 27-point action plan last month, and more importantly Pakistan responded to all queries raised by the AP Joint Group. Now the Group will present its report on Pakistan in meeting of FATF in October. In the wake of toughest IMF programme, the government has witnessed a huge surge of 8.9 per cent in the budget deficit in the last fiscal year ended on June 30, 2019. Inflation has entered double digit and because of high interest rate, economic activities have almost come to a standstill. Unemployment was also on the rise.

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