Islamabad: The International Monetary Fund (IMF) has warned that Pakistan’s failure to prevent money laundering is not only weakening the financial system but also posing risks to the country’s reputation globally.
The IMF’s draft Governance and Corruption Diagnostic Report states that due to the ineffective use of data on the beneficial owners of companies, fake business entities can easily obtain government contracts, which is affecting transparency.
The report reveals that there is a clear lack of communication between the SECP, State Bank, FBR, commercial banks and investigative agencies, which is hindering financial investigations. According to experts, this situation is making it difficult to stop the flow of illicit funds, which can have a direct impact on foreign investment and trade partnerships.
The IMF has suggested that an institutional working group be established to make inter-agency data sharing effective and strengthen financial investigations. The report emphasizes that Pakistan will not be able to meet global financial standards without improving transparency and governance.
