After IMF, World Bank prepares to help cashless Pakistan, plans bail out of Rs…., India plans to counter by…

After the IMF, now the World Bank is also preparing to give loan to Pakistan which will be opposed by New Delhi. India’s concern is that the financial assistance received by Pakistan can be used to sponsor cross-border terrorism. This is the reason why India will oppose the funding of Pakistan from the World Bank. Along with this, India is also trying to put Pakistan in the ‘grey list’ of FATF. According to a new report, India is going to contact the global financial crime monitoring body FATF (Financial Action Task Force). India wants FATF to include Pakistan in its ‘grey list’.

In January this year, the World Bank had agreed to give Pakistan a loan of $ 20 billion in the next 10 years. This loan is to be given on issues like the impact of climate change and private sector development. India will oppose the money Pakistan gets from the World Bank. India says that Pakistan buys weapons by taking loan from the IMF. He told the IMF that whenever Pakistan gets a loan from the IMF, it increases its purchase of arms.

How have these institutions become a joke?

Institutions such as the IMF and the World Bank often argue that their goal is to stabilize a country’s economy so that it does not fall into further crisis, which could have negative effects regionally and globally. They also say that they impose conditions to promote reforms. However, critics say that despite these arguments, repeated financial assistance to a country that is accused of harboring and supporting terrorism creates an ethical dilemma. It can undermine the efforts of the international community.

India is now planning to put pressure on Pakistan to be included in the FATF grey list again on terror funding . Pakistan was removed from this list in 2022. This increased its credibility among financial institutions. India believes that putting Pakistan back on the grey list will curb its sources of financial assistance.

What is FATF’s Grey List?

FATF’s grey list includes countries that are weak in preventing money laundering, terror financing and proliferation of weapons. These countries are closely monitored. FATF meets three times a year – in February, June and October. Important decisions are taken in these meetings. Pakistan was put on FATF’s grey list in 2018. At that time, Pakistan was given an action plan to prevent money laundering and terror financing.

Earlier, India had also opposed the IMF’s $1 billion bailout package to Pakistan . It had abstained from voting on it. India had appealed to the IMF to examine Pakistan’s record and consider the ‘reputational risk’ in view of the allegations of financing terrorism.

IMF is giving its argument

At the same time, the IMF says that Pakistan has met all the targets set for the bailout package. IMF Communications Director Julie Kozak said that the IMF board found that Pakistan has indeed met all the targets and has also made some improvements. Due to this the board approved the program. He also clarified that all the amount received from the IMF goes to the reserve of the Central Bank of Pakistan. It is not transferred to the government to finance the budget.

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