One of the most pressing problems for Pakistan at this time is the fulfillment of its promise to the Financial Action Task Force (FATF) to get itself out of the grey list. In the last year, the government has managed to complete 20 out of 27 tasks listed in the agreement between both parties. The remaining seven can decide the fate of the country and could be the cause of Pakistan’s image on a global level. At this point, the European Union (EU) has extended a hand of cooperation, which is a quite welcoming gesture along with a reasonable and feasible framework to follow in this regard.

This was decided in a joint press release issued after the conclusion of the tenth session of the European Union-Pakistan Joint Commission in Brussels on Friday. Some of the key areas that were discussed between both parties were the implementation of ‘GSP-Plus’, issues hampering trade and investment, and improving the business climate within Pakistan. Pakistan at this point needs the support of experienced and trained professionals who can help guide how the setup can be improved. The financial reforms require a great understanding of the local network along with how some of the allies might have tackled similar challenges.

Digitisation has been a problem for the government of Pakistan. If the EU provides technical assistance, the government will have to work on improving its ability to match the technical knowledge that exists globally. Despite the widespread industrialisation within the country and expansion of business, technical growth remains a problem within Pakistan.

One of the greatest problems for this challenge, despite the support of the EU, remains the political instability within Pakistan. The lack of coordination and trust between the governing party and the opposition parties is resulting in a failure of accomplishment of several state duties - one of which is the coordination between the federal and the provincial governments to work on the agenda of the FATF collectively. The EU offering to help at this point covers a lot of groundwork for the state and it is important to collaborate at this point so that in February Pakistan stands at a relatively better position, as countries have been known to be removed off the grey list with just 80 percent compliance of the clauses.