India wants Pakistan on FATF 'grey list', will oppose World Bank loan
NEW DELHI: India will make a strong case to put Pakistan back on the Financial Action Task Force 'grey list' at its next meeting in June and highlight Islamabad's failure to comply with anti-money laundering and terror financing rules, a govt source told TOI on Friday.
India will also oppose a World Bank funding plan for Pakistan, which is also scheduled for discussion in June, the source said, adding Islamabad had used funds from multilateral agencies to buy arms.
The source said India will present a dossier to the watchdog detailing how Pakistan had failed to comply with the rules.
World Bank expected to review $20bn funding for Pakistan
Against the backdrop of escalating tensions between India and Pakistan post Pahalgam massacre, New Delhi has mounted a global offensive against Pakistan, which it has accused of backing terrorists.
After Pakistan was placed in FATF 'grey list' in 2018, it had promised to submit an action plan to curb money laundering and terror financing. It had also talked about enacting a law, which it has failed to do so far. In Oct 2022, FATF had announced that Pakistan had been removed from its 'grey list' as it had largely completed its action plans.
Removal from the 'grey list' enables a country to have greater access to foreign loans and aid.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Thị trường có dấu hiệu suy thoái không?
IC Markets
Đăng ký
When FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring and this is referred to as the 'grey list'.
World Bank is expected to review a $20 billion funding for Pakistan under the 10-year country partnership framework that was announced in Jan this year.
Earlier this month, India had strongly objected to IMF, which approved a $2.3 billion loan to Pakistan under the extended fund facility lending programme ($1 billion) and a fresh resilience and sustainability facility lending plan of $1.3 billion.
India abstained from voting as IMF rules do not permit a formal 'no' vote. India had conveyed its strong dissent within the constraints of the IMF's voting system and used the opportunity to formally record its objections. Source said finance minister Nirmala Sitharaman had spoken to IMF chief Kristalina Georgieva and several European finance ministers expressing India's strong objection.
"India is not averse to any country receiving money for development.
But IMF funding was not the right thing to do at a time when there were border tensions between India and Pakistan and a situation of war. Also, Pakistan has a history of spending not for people, but for buying arms," the source said.
After India's sustained objection, IMF has imposed 11 strict conditions on Pakistan on several parameters linked to fiscal, governance, social, monetary and financial parameters along with metrics to be met in energy sector and trade, investment policy and deregulation.
Sources citing public data said Pakistan spends on average around 18% of its general budget on "defence affairs and services", while even conflict-affected countries spend on average far less (10-14% of their general budget expenditure). Sources pointed out that Pakistan's arms imports increased from 1980 to 2023 by over 20% on average in the years when it received IMF disbursements compared to years when it did not receive such funds.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 minutes ago
- Time of India
Diplomats, automakers push Beijing to loosen rare earth magnet export restrictions
Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources said, as shortages threatened to halt global supply chains. A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs, according to a source familiar with the visit. European diplomats from countries with big auto industries have also sought "emergency" meetings with MOFCOM in recent weeks, a European official said. India, where automakers warned last week they were close to shutting down, is organising a trip for auto executives in the next two to three weeks. "This is an extremely urgent and critical time for the auto and electronics industry ," Adam Dunnett, secretary general of the European Chamber of Commerce in China, told Reuters, saying some firms could stop production as soon as this week. The European Union and Japanese missions in Beijing did not immediately respond to requests for comment. The possibility of widespread shutdowns across the global auto industry demonstrates the enormous leverage Beijing has built over its decades-long rise to dominance in the rare earth industry. China - which controls over 90per cent of global processing capacity for the magnets, used in everything from automobiles and fighter jets to home appliances - imposed export restrictions on seven rare earth elements and several magnets on April 4, requiring exporters to obtain licenses from Beijing. The controls are widely viewed as a key source of diplomatic leverage because there are almost no alternatives outside China. Beijing agreed to suspend or remove non-tariff countermeasures imposed on Washington since April 2 as part of the Geneva truce. But there has only been a slow trickle of approvals since then and Chinese government officials have declined to address the issue publicly. US Trade Representative Jamieson Greer last week accused Beijing of "slow-rolling" the removal of non-tariff countermeasures. South Korea's industry ministry has asked China to issue more export licenses, an official told Reuters, as only a handful of companies had received licenses. China's foreign ministry on Tuesday did not respond to a question on whether Beijing would speed up processing of export license applications. The Ministry of Commerce did not immediately reply to queries sent after business hours. European firms alone have thousands of applications waiting for approval, said a source familiar with the matter. State media reported last week that China was considering relaxing some of the curbs for European semiconductor firms and the Ministry of Foreign Affairs said last week it would strengthen cooperation with other countries over its controls. However, rare-earth magnet exports from China halved in April due to a long and opaque application process for export permits. "China won't blink but it will slowly and strategically provide exemptions," said a US business figure briefed on the matter, who declined to be named for sensitivity reasons. "It's a painful stress test of an already fragile relationship."
The Hindu
32 minutes ago
- The Hindu
Poland's Tusk sets confidence vote on his government for June 11 due to ‘new political reality'
Poland's Prime Minister Donald Tusk said on Tuesday (June 3, 2025) that parliament will hold a confidence vote on his government on June 11, as the country faces a 'new political reality.' He called for the vote after his political ally, the liberal Warsaw mayor, lost Poland's weekend presidential election to conservative Karol Nawrocki. 'We are starting the session in a new political reality,' Mr. Tusk said, at the start of a Cabinet meeting in Warsaw. 'The political reality is new, because we have a new president. But the constitution, our obligations and the expectations of citizens have not changed. In Poland, the government rules, which is a great obligation and honour.' Mr. Tusk's government runs most of the day-to-day matters in Poland. It also exists separately from the presidency, but the president holds power to veto laws and influence foreign policy, and Mr. Nawrocki's win will make it extremely difficult for Mr. Tusk to press his pro-European agenda. There are already questions about whether Mr. Tusk's fragile coalition can survive until the next scheduled parliamentary election at the end of 2027. Some of his political opponents are calling for him to step down. The decision to call a confidence vote is apparently an attempt by Mr. Tusk to try to reassert authority in a shifting political situation where some of his coalition partners might be less likely to want to stick with him. Mr. Tusk oversees a coalition of several parties spanning an ideological divide, from left-wing progressives to centrists to agrarian conservatives. The divided coalition has failed to agree on some issues and the government has failed to fulfill some of Mr. Tusk's key promises, including a liberalisation of the restrictive abortion law. Mr. Nawrocki, who was supported by U.S. President Donald Trump, won 50.89% of votes in a tight race against Warsaw Mayor Rafał Trzaskowski, who received 49.11%. The election revealed deep divisions in the country along the eastern flank of NATO and the European Union. Nawrocki, who is set to take office on Aug. 6, is expected to shape the country's domestic and foreign policy in ways that could strain ties with Brussels while aligning the Central European nation of nearly 38 million people more closely with the Trump administration. Trump welcomed his election, saying on his social media platform Truth Social: 'Congratulations Poland, you picked a WINNER!' Nawrocki replied to Trump on X, saying: 'Thank you, Mr President. Strong alliance with the USA, as well as partnership based on close cooperation are my top priorities.' Nawrocki will replace Duda, whose second five-year term ends on Aug. 6. The Polish constitution limits presidents to two terms. Duda has invited Nawrocki to a meeting on Tuesday evening, and said he believes it will be only the first of meetings in which he will share his experiences, primarily in the field of security policy and international policy.
&w=3840&q=100)
Business Standard
33 minutes ago
- Business Standard
Over 75% households, firms to face extreme weather next decade: World Bank
More than 60 per cent of households and firms have experienced extreme weather in the last five years, and over 75 per cent expect it in the next decade, a new report by the World Bank revealed on Tuesday. South Asia is facing a sharp rise in extreme weather, with nearly 90 per cent of the population expected to be exposed to intense heat, and more than one in five people at risk of severe flooding by 2030, the World Bank warned in its From Risk to Resilience: Helping People and Firms Adapt in South Asia report. The region is also expected to face more frequent and severe weather shocks over the coming decade. By 2030, 1.8 billion people (89 per cent of the region's population) are projected to be exposed to extreme heat, while 462 million people (22 per cent) are projected to be exposed to severe flooding. However, when households receive early warnings, nearly 90 per cent take pre-emptive action to reduce damages. Households' access to early warning systems is uneven: in vulnerable coastal and riverine areas, most households have access to early warnings for cyclones, but fewer than half have access to early warnings for floods and other shocks, according to the report. These findings call for better early warning systems, targeted programmes to assist vulnerable households during shocks in a timely fashion, and policies to help households adapt to the growing risk of extreme weather shocks. Many households and businesses are already taking steps to adapt to climate risks. Around 80 per cent of households and 63 per cent of firms have taken some measures to adapt. However, most of these measures are basic, such as raising house foundations or installing fans. More advanced options, like using climate-resilient seeds or relocating from high-risk areas, remain less common. Firms that have experienced, or expect, more weather shocks have been more likely to undertake adaptations, while firms with less-advanced management practices, and firms facing greater financial and regulatory obstacles, have adapted less. These results suggest there is scope for policies to encourage adaptation by improving access to information about adaptation options, by helping firms strengthen managerial capabilities, and by easing regulatory burdens and expanding access to finance. 'The urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources,' said Martin Raiser, World Bank vice president for South Asia. 'Governments must act quickly to remove the barriers that prevent more effective adaptation. This includes removing distortions in land and labour markets, expanding access to finance, and investing in public infrastructure to support people and businesses as they respond to climate risks.' The report finds that market barriers and income constraints are holding back stronger adaptation. Households with more education or access to formal finance are more likely to adopt advanced strategies. Similarly, better-managed firms with fewer regulatory barriers tend to be more adaptive. Removing these barriers would enable more effective adaptation by households and firms. 'Private sector adaptation could reduce one third of the region's projected climate damage, but this requires governments to strengthen enabling environments,' said Franziska Ohnsorge, World Bank chief economist for South Asia. 'Adaptation is most effective when markets function well and when essential services like transport, water, healthcare, and digital connectivity are widely accessible.' The report calls for both targeted adaptation efforts and broader development measures that also build climate resilience. Governments have a critical role to play, even with limited fiscal space. They can expand access to localised climate information, promote weather-indexed insurance, and support the use of resilient technologies such as energy-efficient cooling systems. Public investments in infrastructure that keep people safe and connected, such as roads, drainage, power supply, and mobile networks, are also essential. The report also calls for policy action guided by three core principles. First, implement a comprehensive package of adaptation measures. Second, prioritise solutions that support both development and climate resilience. Third, align adaptation strategies with long-term development goals to ensure lasting progress. Governments in South Asia can best build resilience by creating the conditions that empower households and firms to adapt.
