Following the IMF, the World bank is getting ready to lend money to pakistan, but New delhi will object. India is worried that pakistan may utilize the money it has received to fund cross-border terrorism.
This is the rationale behind India's opposition to World bank funding for Pakistan. In addition, india is attempting to add pakistan to the FATF's "grey list." A recent report claims that india will get in touch with the Financial Action Task Force, a global organization that monitors financial crime. india wants pakistan added to the FATF's "grey list."
The World bank agreed to lend pakistan $20 billion over the next ten years in january of this year. This loan is intended to be used for topics such as private-sector development and the effects of climate change. India will object to pakistan receiving World bank funding. india claims that pakistan uses IMF loans to purchase weapons. He informed the IMF that pakistan raises its arms purchases whenever it receives an IMF loan.
How did these institutions become a joke?
Organizations like the World bank and the IMF frequently claim that their objective is to stabilize a nation's economy in order to prevent it from experiencing another crisis, which could have detrimental repercussions on a regional and international scale. Additionally, they claim that they set requirements in order to encourage reforms. Critics contend that despite these defenses, there remains an ethical conundrum raised by ongoing financial support for a nation suspected of sheltering and assisting terrorism. The international community's efforts may be weakened by it.
India now intends to exert pressure on pakistan to be added to the FATF's grey list over sponsorship of terrorism once more. In 2022, pakistan was taken off of this list. As a result, financial institutions found it more credible. India thinks that placing pakistan back on the gray list will limit its access to funding.
What is FATF's Grey List?
Countries that struggle to stop the spread of weapons, money laundering, and terrorism financing are on FATF's grey list. We keep a careful eye on these nations. Three times a year, in February, June, and October, FATF meets. These sessions are where important decisions are made. In 2018, pakistan was included to the FATF's gray list. An action plan to stop money laundering and the funding of terrorism was then provided to Pakistan.
India had previously resisted the IMF's $1 billion rescue offer to Pakistan. It had not cast a vote on it. In light of the accusations of terrorism financing, india had urged the IMF to review Pakistan's record and take the "reputational risk" into account.
IMF is giving its argument
However, according to the IMF, pakistan has achieved every goal outlined in the bailout deal. According to Julie Kozak, director of IMF communications, the IMF board concluded that pakistan had achieved all of its goals and had also made some progress. As a result, the program was authorized by the board. He also made it clear that the Central bank of Pakistan's reserve receives all of the money it receives from the IMF. The government does not get it in order to fund the budget.
This is the rationale behind India's opposition to World bank funding for Pakistan. In addition, india is attempting to add pakistan to the FATF's "grey list." A recent report claims that india will get in touch with the Financial Action Task Force, a global organization that monitors financial crime. india wants pakistan added to the FATF's "grey list."
The World bank agreed to lend pakistan $20 billion over the next ten years in january of this year. This loan is intended to be used for topics such as private-sector development and the effects of climate change. India will object to pakistan receiving World bank funding. india claims that pakistan uses IMF loans to purchase weapons. He informed the IMF that pakistan raises its arms purchases whenever it receives an IMF loan.
How did these institutions become a joke?
Organizations like the World bank and the IMF frequently claim that their objective is to stabilize a nation's economy in order to prevent it from experiencing another crisis, which could have detrimental repercussions on a regional and international scale. Additionally, they claim that they set requirements in order to encourage reforms. Critics contend that despite these defenses, there remains an ethical conundrum raised by ongoing financial support for a nation suspected of sheltering and assisting terrorism. The international community's efforts may be weakened by it.
India now intends to exert pressure on pakistan to be added to the FATF's grey list over sponsorship of terrorism once more. In 2022, pakistan was taken off of this list. As a result, financial institutions found it more credible. India thinks that placing pakistan back on the gray list will limit its access to funding.
What is FATF's Grey List?
Countries that struggle to stop the spread of weapons, money laundering, and terrorism financing are on FATF's grey list. We keep a careful eye on these nations. Three times a year, in February, June, and October, FATF meets. These sessions are where important decisions are made. In 2018, pakistan was included to the FATF's gray list. An action plan to stop money laundering and the funding of terrorism was then provided to Pakistan.
India had previously resisted the IMF's $1 billion rescue offer to Pakistan. It had not cast a vote on it. In light of the accusations of terrorism financing, india had urged the IMF to review Pakistan's record and take the "reputational risk" into account.
IMF is giving its argument
However, according to the IMF, pakistan has achieved every goal outlined in the bailout deal. According to Julie Kozak, director of IMF communications, the IMF board concluded that pakistan had achieved all of its goals and had also made some progress. As a result, the program was authorized by the board. He also made it clear that the Central bank of Pakistan's reserve receives all of the money it receives from the IMF. The government does not get it in order to fund the budget.
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