The International Monetary Fund (IMF) has highlighted the risks of corruption-based money laundering in Pakistan, even as the country has made progress in implementing FATF conditions.
In its Governance and Corruption Assessment report, the IMF acknowledged Pakistan’s efforts to prevent money laundering and terror financing but warned that the country still faces significant threats from corruption-driven money laundering.
The global financial body recommended that Pakistan seek legal assistance from other countries to trace and recover wealth looted through corruption and to expedite the asset recovery process. It also emphasized the need to implement a 15-point reform agenda to curb corruption.
The report noted that risks are further heightened due to cash transactions in real estate and wholesale trade. It also pointed out the influence of powerful owners in the sugar sector on government policies, stating that sugar exports and prices are directly affected by the sugar lobby.
Furthermore, the report stated that during the PTI government in 2018–19, subsidized sugar exports led to shortages and inflation. An FIA inquiry had confirmed collusion between political figures and sugar mill owners, yet no accountability measures were taken.
