The international Financial Action Task Force has placed Pakistan among a handful of countries in the high-risk category for its lack of action against money laundering and terrorism financing. Capital inflows and outflows from Pakistan are now subjected to more serious scrutiny. Even legitimate philanthropic donations for noble causes have to bear the brunt.
International retail banks are either completely withdrawing or substantially curtailing their operations particularly at the retail level. Pakistani banks are facing difficulties in maintaining international correspondent banking ties. Pakistan is being edged out of international financial integration.
The country’s market share in world exports has declined significantly. The recent energy crisis can be blamed for short-term production difficulties but the withdrawal of the buying houses’ physical presence from the country has contributed significantly to this decline. New and emerging companies avoid Pakistan as they can source their supplies at competitive prices and quality from Bangladesh, Cambodia, Vietnam etc. where they can easily undertake reconnaissance and exploratory trips.
The landed cost of goods at Pakistani ports is likely to rise due to this escalation in insurance premises. Alternatively, big shipping companies will simply skip our ports.
The northern areas of Pakistan that can be compared to the mountainous regions of Switzerland used to attract thousands of tourists from abroad every year for hiking, trekking, mountain climbing, skiing and other sports. The local economy of this area depends on the tourist trade. Since the murderous attacks on the tourists at some base camp, tourist traffic has almost disappeared.
TASHFA SHAHAB
Karachi
