Our response will be tough: TTP

 

ISLAMABAD: As fighter aircraft conducted overnight airstrikes at the positions of Taliban militants in North Waziristan, the Taliban on Sunday said they will give a tough reply to the operation.
In a statement, the Tehrik-e-Taliban Pakistan (TTP) spokesman Shahidullah Shahid said they were keeping an account of the ‘dozens of innocent people’ killed in Sunday’s military strikes.Shahid said they had not closed the doors of dialogue with the government and were still ready for meaningful talks. However, he insisted that the government should adopt a serious approach to revive the process.

He said they were ready for meaningful talks with the government as their negotiation team was still intact.“The government has constantly adopted a non-serious approach and instead of focusing on the peace process, it started creating a rift within the Taliban to divide them. This forced us to end the ceasefire and launch counter-attacks which was our right and obligation under the Islamic system,” the TTP spokesman said.

Shahid disputed the military’s claim about the Taliban casualties in Sunday’s strikes and claimed that “civilians were also killed.”He said the leaders were fooling the nation through attractive slogans and urged the people of Sindh, Balochistan, Khyber Pakhtunkhwa and the Islam-minded people of Punjab to stay at an arm’s length from this war of the rulers.He said the ruling elite had sold off sensitive issues like peace and security for dollars after making billions in different walks of life.

IMF wants tough money laundering laws

ISLAMABAD: While appreciating the rebound of Pakistan’s economic performance which shows growth has picked up and inflation reduced, the International Monetary Fund (IMF) has asked Islamabad to introduce amendments to the Anti-Money Laundering (AML) law by end of September for combating tax evasion in the country.

Under the US$6.67 billion bailout package for Pakistan’s struggling economy, the IMF has made checking money laundering as part of structural benchmarks.

In order to enable the use of AML tools to combat tax evasion, Pakistani authorities started the preliminary work to include tax crimes in the Schedule of Offences of the 2010 Anti-Money Laundering Act (AMLA). A list of serious tax offences is being identified.

The IMF has explained in its Technical Memorandum of Understanding that the “relevant tax laws” in the structural benchmark on “enactment of amendments to the relevant tax laws and submission of amendments to the AMLA for end-June 2014” is defined by incorporating Income Tax Ordinance 2001; the Federal Excise Act 2005; the Sales Tax Act 1990; the Customs Act 1969; and any other relevant law.

Pakistani authorities also committed to raise power tariff for erasing the monster of circular debt. The gas tariff will also be raised in the months ahead.

“In order to ensure that serious tax crimes are predicate offences to money laundering, we will enact amendments to the relevant tax laws and submit amendments to the AMLA to parliament by end-September 2014 (new structural benchmark). We will also ensure that the AML framework is properly implemented to ensure detection of potential cases of abuse of the investment incentive scheme to launder criminal proceeds. Proper guidance will be provided by the Financial Intelligence Unit to financial institutions and the FBR by end-June 2014,” the staff report of the IMF released on Friday states.

It states that Pakistan continues to face important security and political challenges. Taliban-related violence has picked up in recent weeks in different parts of the country, complicating public administration in some areas.

The PML-N-led national government retains a strong commitment to their economic reform programme, but political resistance is strong, particularly to greater exchange rate flexibility and to some difficult structural reforms. The authorities also confront challenges in their administrative capacity in carrying out many complex reforms simultaneously.

According to the IMF, risks to outlook are to the downside and main risks include security conditions in Pakistan remain difficult, with significant terrorist activity, as well as sectarian violence and urban criminal activity which could depress investment and growth.

The new structural benchmarks are included as part of the IMF programme to conduct a diagnostic study of the regulatory framework of the power sector and prepare an interim report (end-April 2014) and enact amendments to the relevant tax laws.

The structural benchmark on the enactment of legislation to enhance central bank independence is being shifted from end-March to end-June 2014.While there is room for improvement in some areas, the IMF states, overall the authorities have made commendable progress in stabilising the economy and launching important structural reforms.

Core programme targets on fiscal consolidation and international reserves have been met, and the authorities have undertaken corrective action to address missed performance criteria.Progress is being made on the structural reform agenda, but determination and perseverance will be required in the face of political and administrative constraints before lasting results can boost the economic growth and stability.

Risks remain high and are tilted to the downside. The government has taken difficult measures to address macroeconomic imbalances and initiate structural reforms, but overall vulnerabilities remain, particularly in the external sector, states the IMF.

External shocks, such as oil and food price volatility, interruption in remittance inflows, or delays in realisation of official and private inflows could put further pressures on the balance of payments. The difficult security situation constitutes the principal domestic downside risk. Risks to policy implementation could also dim the outlook, the IMF report concluded.