Welcome FATF, good bye GSP

The saying that desperate times call for desperate measures loses its essence when dealing with a situation such as the one Pakistan is presently facing. Federal Ministers, Secretaries and Ambassadors must be at a loss when trying to understand why they had to face this kind of a predicament during their tenure. It is like finding oneself between the devil and the deep blue sea. For a change, the standard excuse of putting the blame on foreign hands is not available to us. For once, we are not blaming anyone for an adverse regional or international development.

A diplomatic faux pas committed by one’s Foreign Office is denigrating. Being politically embarrassed, both at home and abroad, is even worse. Opprobrium in both political and diplomatic spheres, coupled with a possible financial loss is lamentable. Rarely, would a country be faced with such a three-pronged dilemma as Pakistan is presently going through. The European Parliament has adopted a resolution urging an immediate review on the temporary withdrawal of Islamabad’s eligibility of the GSP status in light of ‘current events’ citing certain ‘discriminatory’ laws towards minorities and fundamental rights. Add into it the next month’s FATF accountability round and you are looking at a nightmarish challenge for Pakistan’s diplomacy.

The Generalised Scheme of Preferences (GSP), a special incentive arrangement for sustainable development and good governance, entails a partial or full removal of custom duties on two thirds of tariff lines and slashes these tariffs to zero per cent for vulnerable low and lower-middle income countries that implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance. Pakistan has been enjoying the fruits of GSP since 2014. The EU is Pakistan’s largest trading partner. In 2018 alone, Pakistan’s exports worth 5.9 billion euros out of a total of 6.7 billion euros availed GSP tariff concessions.The estimated trade loss is $3 billion if the GSP status is revoked.

The resolution says Pakistan has violated its GSP status, meaning that the country has failed to demonstrate progress on the related core conventions. Expressing deep concern at the anti-French sentiment in Pakistan, the resolution calls on Islamabad to unequivocally condemn incitement to violence and discrimination against religious minorities. Unfortunately, the streak of losing friends in the international arena continues. The resolution is also backed by the incumbent Chair of the European Parliament’s Foreign Affairs Committee, David McAllister, who in the past had always supported Pakistan on GSP concessions.

The serious reservations made by the EU and subsequent statements emanating from London and Washington referring to FATF and Reconstruction Opportunity Zones (ROZs) indicate the emerging consensus among the resourceful West on conveying a strong message to Pakistan. Do not take our graciousness for granted as any favour can be revoked if any of our friends are irked or affected by any development in your country. The timing of adopting the resolution coincides with Secretary Antony Blinken’s references to issues like religious freedom and ‘significant restrictions’ on Pakistani media outlets. Otherwise, why would Washington issue such statements when Pakistan’s importance in the context of withdrawal of foreign troops from Afghanistan has just been reiterated? Suddenly, Pakistan finds itself in the middle of an extremely difficult situation.

The impact of this trade related tsunami was such that Islamabad overlooked the positives that this resolution has brought forth. Besides expressly welcoming the recent judgment of the Supreme Court of Pakistan to ban the execution of prisoners with mental health conditions and also the interreligious dialogue taking place in Pakistan, the resolution has indirectly cautioned Islamabad about FATF related requirements. The FATF would like Pakistan to complete its full action plan, including the remaining three missing items before June 2021. Would the GSP anger be reflected in the proceedings of an already not-so-pleased West dominated FATF, is anybody’s guess.

Making laws through an act of Parliament is a prerogative of any government in power. Generally speaking, the international community does not raise any objection to enactment of a domestic law as long as its sphere of influence remains within the bounds of that specific country. However, in the contemporary world, where human rights have assumed more importance than humans themselves, there is hardly any room for logic and reasoning when any domestic law clashes with the political and economic interests of any international actor.

Pakistan has announced its decision to address the EU’s reservations after issuing a standardised press release. The rights of minorities in the country would be ensured but the West cannot dictate decisions. Simultaneously, the Muslim world is being urged to unite in explaining to the West certain basic precepts of Islam.A lack of understanding, which should have been addressed years ago by offering true explanations and contexts of certain laws of Pakistan and public sentiments, is now incumbent. You do not start digging a well when you are thirsty.

It is unclear how Pakistan will meaningfully and substantially address the EU’s reservations in the context of the GSP or FATF without fiddling with the already promulgated laws. Creating panic in the Ministries or issuing strongly worded instructions to related Missions or writing personal letters to concerned authorities or giving the usual knee jerk reaction may satisfy one’s sense of duty or responsibility. However, if the objective is to manage the crisis effectively and subsequently resolve the conflict as well, some serious introspection is required with sincerity of purpose.This long overdue introspection may result in facing some hard realisationsof certain fault lines in the dicey realm of policy making. You cannot have the cake and eat it too. Certain tough decisions need to be taken to bring harmony in diversity. This must be followed by effecting immediate practical measures, both at home and abroad, to avoid the wrath of the withdrawal of the GSP concessions or the FATF blacklistingor any such future embarrassment. The going is tough, but it must continue.

Najm us Saqib
The writer is a former Ambassador of Pakistan and author of seven books in three languages. He can be reached at najmussaqib
1960@msn.com

The writer is a former Ambassador of Pakistan and author of eight books in three languages. He can be reached at najmussaqib1960@msn.com.

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