Latest news with #KristalinaGeorgieva
The Print
24-05-2025
- Business
- The Print
India to make strong case with FATF to put Pakistan back in ‘grey list', block World Bank funds
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog and sets international standards that aim to prevent these illegal activities. On April 22, Pakistan-trained terrorists killed 26 people in Pahalgam, Kashmir. India has consistently held that Pakistan has given safe haven to designated terrorists and the same was evident when senior military officials were present at the funeral of the terrorists killed in Indian military attacks of May 7. New Delhi, May 23 (PTI) India will highlight Pakistan's persistent support for terrorism and its funnelling of multilateral funds for arms procurement to build a strong case for reinstating Islamabad on the global money laundering and terror financing watchdog's 'grey list', and block funding from the World Bank. 'India will submit a dossier to the FATF on the omissions and commissions by Pakistan with respect to FATF anti-money laundering and terror financing norms. We will be taking it up (with the FATF) for grey listing of Pakistan,' a government source said. The next meeting of the Asia Pacific Group (APG) of FATF is scheduled for August 25, during which India is likely to present its views to the global watchdog. The next FATF plenary and working group meeting is scheduled for October 20. Currently, there are 25 countries in FATF 'grey list'. These countries are under increased monitoring and they have to address strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. Pakistan's history with FATF's 'grey list' dates back to February 2008, when it was placed in the monitoring list. In June 2010 it was removed from the list, only to be brought back in February 2012, and then removed again in February 2015. It was brought back in the list again for the third time in June 2018, and was later removed in October 2022 with FATF asking Pakistan to continue to work with APG to further improve its anti-moneylaundering/combatting the financing of terror (AML/CFT) system. Separately, India will next month oppose the World Bank funding to Pakistan, just as it had done in case of IMF, arguing that Islamabad had used such funds in the past to procure arms and ammunition. World Bank is likely to review next month its USD 20 billion lending to Pakistan under the Country Partnership Framework agreed in January this year. The funds to cash-starved Pakistan were for areas including clean energy and climate resilience for a period of 10 years beginning 2026. 'We will oppose the upcoming World Bank funding to Pakistan,' the source said. India had lobbied with IMF Chief Kristalina Georgieva and ministers of IMF board member nations against the agency extending a USD 2.3 billion assistance to Pakistan earlier this month. New Delhi presented proofs ranging from presence of senior Pakistani military officials at the funeral of designated terrorists to data that showed that Islamabad had misused funds in last two decades with arm procurement rising exponentially. 'India is not averse to any country receiving money for development purposes. But the 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. According to the public data, Pakistan spends on average around 18 per cent of its general budget on 'defense affairs and services', while even the conflict-affected countries spend on average far less (10-14 per cent of their general budget expenditure). Further, Pakistan's arms imports increased dramatically from 1980 to 2023 by over 20 per cent on average in the years when it received IMF disbursements in comparison to years when it did not receive the same. PTI JD ANZ JD ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
23-05-2025
- Business
- Time of India
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.
Time of India
23-05-2025
- Business
- Time of India
India to push for Pakistan's return to FATF grey list
New Delhi: India will push for Pakistan's inclusion in the grey list of the Financial Action Task Force (FATF), flagging the country's failure to comply with the organisation's prescribed anti-money laundering and terror-financing framework, a government source said. New Delhi will also highlight fund diversion concerns to the World Bank when its board discusses assistance to Pakistan, the person said. Tensions between India and Pakistan rose after the terror attack in Pahalgam on April 22 that killed 26 civilians, leading to military action earlier this month . FATF is a global financial crime watchdog that monitors countries for their efforts to counter money laundering and terrorist funding. It meets thrice a year—February, June, and October. The countries that have committed to resolving identified strategic deficiencies within agreed timeframes and are already under increased monitoring are put on the grey list if deficiencies are detected. In 2018, Pakistan was placed on the grey list, following which it committed to an action plan to curb money laundering and terror financing. In 2022, FATF removed Pakistan from the list. Inclusion on the grey list makes it difficult for a country to get external financing and international financial aid. Private investors are also not too keen on participating in such economies. World Bank Funding India will also raise objections when the World Bank considers assistance to Pakistan next month. The person cited said that India is not against any developmental assistance to Pakistan, but the latter's record shows that its arms purchases increased after securing multilateral funding over the years. The World Bank is expected to review its $20 billion lending to Pakistan under the Country Partnership Framework agreed in January this year. 'We will oppose the upcoming World Bank funding to Pakistan,' the source said. Earlier this month, India opposed the International Monetary Fund's $2.3 billion assistance to Pakistan. Sources said finance minister Nirmala Sitharaman had spoken to IMF chief Kristalina Georgieva and some other European finance ministers about the proposal that had already been included in the lender's board meeting agenda circulated earlier. The IMF board approved the assistance; India abstained from the vote. India pointed to the presence of senior Pakistani military officials at the funeral of designated terrorists and provided other data that showed that Islamabad had misused funds in the last two decades. It showed Pakistan's arm procurements rose exponentially over this period, even as it sought multilateral assistance. To be sure, the IMF was persuaded to impose 11 strict conditions on Pakistan. These relate to fiscal management, governance, social, monetary and financial parameters, along with metrics to be met in the energy sector and trade, investment policy, and deregulation. 'India is not averse to any country receiving money for development purposes,' said the person cited. 'But the 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.' According to the public data, Pakistan spends on average around 18% of its general budget on 'defence affairs and services,' while even conflict-affected countries spend less (10-14%). Pakistan's arms imports increased by over 20% on average in the years it received IMF disbursements during the period between 1980 and 2023.
&w=3840&q=100)
Business Standard
23-05-2025
- Business
- Business Standard
India to push FATF to put Pakistan back in grey list at next review
India is set to submit a dossier at the upcoming Financial Action Task Force (FATF) meeting, calling for Pakistan to be placed back on the grey list of the global money laundering and terrorist financing watchdog, said a senior government official. 'India will highlight multiple commissions and omissions by Pakistan, such as restitution of money, hosting terrorists, and buying military equipment with development funding. Pakistan has also failed to pass promised laws (such as Anti-Terrorism (Amendment) Bill, 2020). It should be sent back to the grey list by FATF,' said the official who did not wish to be named. The FATF grey list flags countries with 'strategic deficiencies' in countering money laundering and terror financing. Re-entry into the list could have far-reaching consequences for Pakistan, including diminished foreign investment, increased borrowing costs, and tighter scrutiny from global financial institutions. Pakistan was removed from the grey list in 2022 after the FATF acknowledged its progress in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks. After the April 22 Pahalgam terrorist attack, India has stepped up pressure on Pakistan both militarily and economically. However, the official indicated that the government did not anticipate any 'big additional demand' for defence spending in the current financial year. 'The defence ministry has granted emergency procurement powers to the armed forces,' the official said. 'Strategic requirements of the country will never be left wanting.' India will also oppose Pakistan's upcoming loan proposal at the World Bank, the official confirmed. 'As long as Pakistan doesn't take any action, we will raise our voice.' Earlier this month, India voiced strong objections to a new lending proposal for Pakistan at the International Monetary Fund (IMF) board meeting on May 9. Despite India's opposition, however, the IMF approved the $1 billion loan, citing Pakistan's compliance with all technical conditions. The official noted that Union Finance minister Nirmala Sitharaman had raised the matter with IMF Managing Director Kristalina Georgieva before the May 9 meeting, urging her not to take up the loan proposal for Pakistan amid tensions along the border between the countries. 'However, India was informed that Pakistan qualifies the technical conditions and it is up to the members to take a final call,' the official said. According to sources, Pakistan allocates around 18 per cent of its general Budget to 'defence affairs and services', significantly higher than the average 10-14 per cent observed even in conflict-affected countries. Moreover, between 1980 and 2023, Pakistan's arms imports reportedly rose by more than 20 per cent during periods it received IMF disbursements compared to the years when it did not.
IOL News
12-05-2025
- Business
- IOL News
South Africa and the AfCFTA: a strategic opportunity to lead Africa's Iindustrial future
A worker poses with a handful of nickel ore. The global energy transition has created unprecedented demand for critical minerals. The minerals sought for the transition include minerals like lithium, cobalt, manganese and nickel, writes the author. Image: Reuters The African Continental Free Trade Agreement (AfCFTA), launched in 2021, offers a once-in-a-generation opportunity to unite 54 nations into a thriving common market, igniting an African industrial revolution with the potential to echo across global trade systems. For South Africa, often regarded as the continent's economic engine, this is a pivotal moment to lead with intention, conviction and pride. As global powers set their sights on Africa's critical mineral reserves, lithium, cobalt and a demographic advantage expected to represent nearly 40% of the world's population by 2060, the AfCFTA provides a path toward prosperity on our own terms. 'Africa isn't just rising; it's ready to lead,' declared IMF Managing Director Kristalina Georgieva. This leadership, however, will depend not on rhetoric but on execution—on the collaborative efforts of private enterprise, public governance, youth innovation and policy clarity. The global economy is in flux. Fragile supply chains, shifting alliances and the race for sustainable and digital industrialisation have left gaps that Africa is well-positioned to fill. The AfCFTA connects our fragmented markets, forming an economic bloc with a combined GDP of over US$3.4 trillion. This isn't just theoretical. The World Bank estimates that the AfCFTA could lift 30 million people out of extreme poverty and increase incomes across the continent by 7% by 2035. South Africa, with its minerals, manufacturing base, financial systems and technology ecosystem, is uniquely placed to drive this transformation—if we act with urgency and unity. Yet, as with any ambitious journey, the road ahead is not without obstacles. Infrastructure remains a stubborn barrier. Port delays in Durban, underinvestment in rail freight and overburdened roads in Gauteng undermine our competitiveness. Skills shortages further limit our readiness—too many South African youth remain locked out of opportunities in advanced manufacturing, green energy and digital industries. Our trade systems still operate on outdated protocols, creating friction where there should be seamless integration. But these challenges also represent levers for change. Imagine the private sector investing in a new tech hub in Cape Town or retraining programs for miners to pivot into solar energy installation. Envision the public sector renewing infrastructure investment with an eye toward interconnectivity, resilience and export readiness. Policymakers could streamline customs procedures and harmonize regulations to support small and medium enterprises (SMEs) in crossing borders with ease. According to UNECA, integrating South African steel into regional automotive value chains could boost jobs, GDP and productivity simultaneously. We are not starting from scratch. Our foundations are solid. Political and macroeconomic stability, strong financial institutions and a globally integrated business sector already make South Africa a regional anchor. Botswana's sustained growth and fiscal prudence show that sound governance attracts long-term investment— South Africa should take heed. We must root out corruption and waste, not only for ethical reasons but as a fundamental enabler of competitiveness. We must reimagine our public expenditure: financing education that prepares youth for future jobs, building roads and broadband networks that connect to regional trade corridors and expanding energy generation to support manufacturing growth. Most importantly, we must invest in linking our economies: South Africa's mineral processing expertise can complement Kenya's agribusiness, Egypt's textiles and Ghana's digital payment systems. In this vision, Africa doesn't trade raw commodities—it trades finished goods, driven by intra-African value chains. Leadership must be shared and inclusive. Private sector players—think Sasol, MTN and Johannesburg's agile tech startups, must move from national champions to regional operators. Governments must collaborate, not compete, to build aligned regulations, joint infrastructure and data-sharing protocols. Our youth, projected to be the largest population group on the planet by 2060, must be empowered not just as beneficiaries, but as co creators. M-Pesa in East Africa is one example of youth-led disruption that scaled across borders. South Africa has the people, the institutions and the industrial base to spark this type of innovation on a continental scale. Global development partners also have a role—through funding, technology transfers and capacity-building— but must act as enablers, not decision-makers. Our future must be designed in Africa, by Africans. History is watching. The AfCFTA could define the next 50 years of African development. If we seize this moment, we will see factories rise from Soweto to Nairobi, powering global markets while improving lives. Our youth could thrive as skilled entrepreneurs and engineers, rather than be statistics of unemployment or migration. But if we hesitate, the consequence is familiar: raw resources shipped out, jobs lost and sovereignty weakened by dependency. The African Development Bank projects that trade-led industrialization could significantly reduce poverty—but only if supported by coherent strategy and implementation. To this end, a concrete and implementable initiative could be the formation of a South Africa-led AfCFTA Task Force within six months. This task force—comprising business leaders, ministers, economists and youth representatives—would be mandated to identify and operationalize one regional trade value chain and one cross-border skills hub by 2027. This is not another think tank. It is a vehicle for tangible outcomes—pilot projects, streamlined logistics, fast-tracked skills development and model partnerships. It would ensure South Africa's leadership is not just symbolic, but structural. The AfCFTA is not a distant dream—it is already law. What remains is to animate it with leadership, investment and vision. South Africa's moment is now. Let us rise with purpose, not just for ourselves, but for the continent that looks to us for inspiration, coordination and courage. If we succeed, Africa will not only rise—it will lead. Nomvula Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She is an MBA candidate at Henley Business School, South Africa. Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. Image: Supplied
