Grey list: LCCI terms FATF's decision 'a bad omen' for economy

The Lahore Chamber of Commerce and Industry has expressed grave concern over the decision of Financial Action Task Force (FATF) to keep Pakistan in "Grey List" and termed it a bad omen for the economy. LCCI President Malik Tahir Javaid said that a couple of months ago FATF intimated to put Pakistan in Grey List. He said people sitting on the helm of affairs deserve appreciation for presenting Pakistan's case strongly. "Economy of Pakistan was expanding with good pace but the decision will put it at a halt," he said.
Inclusion of Pakistan in Grey List will tarnish the soft image of the country and cost of doing business would go up make borrowing from international donors difficult and shatter the confidence of foreign banks and investors," he said. He said stigma of a doubtful country will portray a negative image to the world and convey the impression that financial system of Pakistan is weak and effective measures are not being taken to control money laundering or financing groups that are banned.
He said the countries, already placed in Grey List, have experienced decline in foreign investment as investors hesitated to invest considering the financing to the terrorist groups. The scenario of foreign direct investment in Pakistan is already not encouraging while Pakistan's inclusion in Grey List will further worsen the situation. Apart from this, Malik Tahir Javaid said it will be hard for Pakistan to get financial aid or loans from the international donor agencies and added that foreign banks will also lose their trust.
LCCI President lamented that Pakistan's closest friends China and Saudi Arab withdrew their objections on Pakistan's inclusion in Grey List. He said Pakistan cannot afford to remain in the Grey List because of its awful results. He said that powers behind this bad decision against Pakistan will convince other countries or economic blocks to remove Pakistan from their priority list for business.
He mentioned that one of the world's biggest economic blocks "European Union" places those countries or organizations like Airlines etc in its black-list which fails to comply with its rules, regulations and standards regarding financial system, suspicious funding, environment and child labor. He cited the examples of some airlines which remained unsuccessful to meet the EU rules and regulations and thus they were banned to enter into the jurisdiction of EU member states.