Pakistan’s removal from the European Commission’s list of high-risk third countries may not have an immediate positive effect on the country’s economy, but experts have said it could benefit it in the long term. Federal Minister for Commerce Syed Naveed Qamar made the announcement in a tweet on Tuesday. This followed the Financial Action Task Force’s (FATF) removal of Pakistan from its grey list last year in October. Pakistan was initially included on the EU’s list because of perceived weaknesses in its anti-money laundering/counter-terrorism financing (AML/CFT) regime. Following assessments of the improvements made by Pakistan, Nicaragua and Zimbabwe, the EU concluded that the nations no longer presented strategic deficiencies in their AML/CFT procedures. Tahir Abbas, Head of Research at Arif Habib Limited (AHL), said that the development would aid exporters and job-seekers, although the global economic climate presented short-term challenges. The recent decline in Pakistan’s exports was due to factors including import restrictions, domestic volatility and the global economic slowdown. However, Fahad Rauf, Head of Research at Ismail Iqbal Securities, said that demand for Pakistani textiles should eventually rise, giving Pakistan access to more businesses and helping export expansion.
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