October 20, 2019 (MLN): Among various economic and policy-oriented developments that took place during the departed week, the event which took most of the attention was the meeting of Financial Action Task Force (FATF) in which it decided that the country must be given time till February to curb terror financing.
Despite Pakistan managed to evade being put in the blacklist by FATF, but the qualms still exist as FATF expressed grave concerns on the overall performance of the country and demanded that Pakistan must implement a full action plan to address terrorism financing risks.
Moreover, the International Monetary Fund (IMF) appreciated the progress made towards the stabilization of Pakistan's economy and government's commitment to the reform process.
In addition to this, the other economic events and developments in public policy that took place during the departed week include the auction conducted the Securities Exchange Commission of Pakistan on Friday wherein SECP introduced amendments in the Credit Rating Companies Regulations, 2016, in order to provide a more conducive regulatory environment for them.
Moreover, the International Monetary Fund (IMF) on Friday appreciated the progress made towards stabilization of Pakistan's economy and government's commitment to the reform process. They also discuss the ongoing implementation of the IMF program
On Thursday, the Ministry of Commerce and Egyptian Commercial Service signed a Memorandum of Understanding for the establishment of Pakistan-Egypt Joint Working Group on trade.
On the upside, the Global Competitiveness Report 2019 of the World Economic Forum ranked Pakistan as the 52 most dynamic economy in the world, moreover, Pakistan managed to secure this rank by improving 15 points from last year where it stood at 67 in 2018.
Meanwhile, in the Global Hunger Index (GHI) 2019, Pakistan ranks 94th out of 119 qualifying countries and with a score of 32.6. The latest GHI revealed that Pakistan’s ranking improved considerably by 12 points if compared with last year’s standing of 106.
Furthermore, on Wednesday, a delegation of TBEA, a world-leading manufacturer of power transformers and electrical equipment, called on Minister for Power Omar Ayub Khan and expressed keen interest in Pakistan’s energy sector. The minister invited the company to invest in Pakistan’s power sector and assured to provide all possible assistance in that regard.
The same day, All Pakistan Textile Mills Association (APTMA) Chairman Dr Amanullah Kassim Machiara urged the government to remove import duty on cotton, as the industry would have to spend $1.5 billion on import of 5.5 million bales due to a 35 per cent production shortage this year.
In addition, Prime Minister Imran Khan on Tuesday welcomed a USD 240 million foreign investment from Hong Kong-based port operator, Hutchison Port Holdings and their commitment to Pakistan’s economic prosperity.
On Tuesday, the State Bank of Pakistan (SBP) prepared a comprehensive framework to strengthen trade-related Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channel.
Meanwhile, Prime Minister Imran Khan directed the ministries concerned to take measures to make the prices of essential items stable as well as ensuring their availability in markets for the benefit of common man.
Furthermore, Word Bank document titled ‘Making De(centralization) Work’, which talks about recent economic developments as well as economic outlook of South Asian countries, revealed that Pakistan’s economy is slowing as the country passes through yet another macroeconomic crisis with high twin deficits and low international reserves. With an IMF Extended Fund Facility supported stabilization program in place, growth is expected to remain low in the near term.
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