Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Monday said the removal of Pakistan from FATF’s grey list will infuse confidence into the business community and improve the image of the country.
The credit for the development goes to the civil and military leadership which will boost economic activities and help put the ailing economy back on a sustainable growth path, he added.
Shahid Rasheed Butt said that the decision would restore the confidence of international financial institutions, help attract foreign direct investment, promote exports and improve credit rating.
The development will also address the liquidity issues as other donor agencies would feel comfortable while dealing with Pakistan besides improving credibility and rating of the local economy to attract foreign investment, he added.
The business leader said that the FATF decision would also help in promoting the soft image of the country in all international forums.
Pakistan had borne accumulative financial losses to the tune of $40 billion since it was put on the grey list and now the removal would attract more export orders from abroad and help in bridging the widening trade deficit.
The move will also help reduce rupee-dollar parity as well as ease negotiations with IMF and other multilateral donors and creditors and it will also provide positive input for the rescheduling of all payables.
It is a major setback to India which had always tried to keep Pakistan on the list as now the confidence of investors across the globe will be restored.
Markets are reacting positively to this news and overall sentiment is likely to remain upbeat. In the long run, this should help strengthen Pakistan’s case of re-rating and upgrading by the International Credit Rating agencies.
It will also be paving the way for a successful ninth review of the IMF which is due in November 2022 enabling the disbursement of SDR 894 million. Overall, the watershed achievement has far more in store for Pakistan than expected.
