Watchdog listing worsens Pakistan’s pandemic fallout

Significance

At a plenary meeting in October, the FATF urged Islamabad to complete a remedial action plan by February 2021. Previous threats to relegate Pakistan to a ‘blacklist’, which would put it at risk of sanctions, were noticeably absent.

Impacts

• Pakistan will reach out to China, its most important partner, for bridging loans as it tries to keep the economy afloat.
• The opposition-led Pakistan Democratic Movement will play on popular discontent over the economy as it steps up anti-government protests.
• Islamabad will engage in back-channel diplomacy ahead of the FATF’s next plenary to ensure it retains support among the body’s members.