IMF issues strict instructions to Pakistan to stop money laundering before budget

Preparations for the new fiscal year budget are underway and at the same time, the IMF has given a strong message to the government. The international financial institution has expressed concern over money laundering under the guise of trade and demanded immediate and effective measures.

The IMF’s objections are on several fronts. On one hand, there is the issue of Trade Based Money Laundering, i.e., laundering black money under the guise of trade transactions, and on the other hand, there are shortcomings in the exchange of beneficial ownership information, which makes it difficult to trace the real owners. Questions have also been raised on the monitoring of suspicious transactions in the banking sector and non-financial businesses, and untaxed investments have also been identified in some sectors.

These demands are also important because Pakistan has previously been on the FATF gray list and this experience has shown that weaknesses in the financial system damage both the country’s reputation and economy. The IMF wants concrete steps to be taken on these issues before the budget so that the financial system is transparent and the conditions set under the loan program can be met.