Pakistan: Exports to EU to face less scrutiny
March 29, 2023
The European Union has approved the removal of Pakistan from its list of "high-risk third countries" that pose a significant threat to its financial system, according to the Asian nation's Ministry of Commerce.
The list marks countries the EU considers to have strategic deficiencies in their anti-money laundering and counter-terror financing frameworks. Pakistan was added to the list in October 2018 creating obstacles in legal and financial transactions with individuals and entities in Pakistan, the ministry said.
How will the move impact trade?
Pakistan's exclusion from the list means businesses and individuals will not be subjected to enhanced customer due diligence by the bloc's authorities, the ministry said on Wednesday.
The businesses include credit institutions, financial institutions, auditors, external accountants, tax advisors, notaries, independent legal professionals, real estate agents and individuals trading in goods, according to Pakistani news publication Dawn.
According to the ministry, the move will likely ease the cost of legal and financial transactions with the bloc and boost Pakistani exports. Commerce Minister Syed Naveed Qamar earlier took to Twitter to announce the move.
Meanwhile, Federal Minister for Climate Change Sherry Rehman credited Foreign Minister Bilawal Bhutto Zardari for the achievement.
"The good news in the current scenario is that the European Union has removed Pakistan from the list of high-risk countries. After this important development, exporters and traders will not face hurdles. The credit for this diplomatic success goes to Foreign Minister Bilawal Bhutto Zardari," she said.
The UK removed Pakistan from its similar list in November of 2022, citing "significant progress” in improving its improving its Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) regime.
mk/sms (Reuters, local media)