Financial Action Task Force (FATF) has been an integral part of the economic decision making and regulatory procedures of the country. The days of the ultimate decision are finally on cards as the Global Watchdog is expected to evaluate and review the performance and strategies of Pakistan via virtual meeting tentatively scheduled for February 22-25, 2021. This would be a much-anticipated review since a keen eye would be payed following a long hiatus to the litigations recently undertaken by the country to eliminate the risks and gaps in the financial framework which might earn Pakistan, a way out from the grey list. However, while the preceding meeting only guided more hopes for better litigation and measures to curb terror financing, brimming foreign propaganda and nefarious rulings within the country itself might hamper the way out but instead could dig the trench further towards a harrowing financial turmoil.
Pakistan was placed on the grey list back in June 2018 due to strategic deficiencies. Just before the Covid-19 pandemic wreaked havoc in the world, Pakistan was allowed a breather of 4-months to comply with the 27-point action plan; of which Pakistan met only 14 targets while missing out on the rest of 13 targets. Moreover, Pakistan could only satisfy 10 of a total of 40 recommendations devised by the task force. These lags led to a major pitfall in the Pakistan’s Stock Market; PSX plummeting bellow 30,000 points. Furthermore, a bitter narrative started blooming regarding arch-rival India pulling all the strings to push Pakistan down further, even in the blacklist. This was largely shunned by the Indian representatives but the failure of the economic and diplomatic front of Pakistan was evident by now.
The FATF plenary was scheduled, like traditionally, in June. However, all scheduled evaluations and review procedures were deferred for 4-months in the wake of the Covid-19 pandemic, allowing yet another unforeseen yet thoroughly welcomed relief span to Pakistan to strive more actively to meet the requirements.
In the preceding 4 months, Pakistan acutely worked to amend the contradicting laws and policies, the parliament playing an agile role to introduce new bills relating to counter-terrorism and countering money laundering as an act to expedite compliance to the international laws and ultimately meeting up all 27 points in the action plan. Almost all the bills presented, albeit some political resistance, were eventually passed which even led to optimism in the stock market; PSX climbing back over 40,000 points after more than half a year, rallying to record high levels despite of the pandemic wreaking havoc on the investors’ mentality across the globe.
The meeting held, after a steep deferral, back in October 2020; the FATF committee observed and commended on the vigilant stance assumed by Pakistan to crawl out of the Grey list. Pakistan has since delivered on 22 out of the 27 core points of the action plan defined. However, the meetings adjourned till February, retaining Pakistan in the grey list under the tag of ‘jurisdiction under enhanced monitoring’ whilst praising the steps of counter-terrorism and anti-money laundering adopted by Islamabad.
Pakistan was warned back in February last year that if not complied by the 27-point action plan, it could be a great threat to the foreign mechanism and would be eventually moved to the monitored jurisdiction, notoriously also known as the ‘Blacklist’. Later this month, FATF would examine if Pakistan meets the 8 key categories of the action plan; remedial actions taken against money laundering, counterfeit terrorism while also reviewing the vigilance of the institutions in countering Terror Financing and actively managing risk. The committee representing Pakistan would perpetually convince the plenary that the country in-fact meets the criteria and transitioning over the next month, the fate of the tormented economy would finally prevail in light of the decision made.
However, Pakistan has been sluggish in taking action against the notorious entities linked to terrorism around the region. The meeting nears with the pinned watch of UN regarding Pakistan’s role of providing a safe haven to Lashkar-e-Taiba founder, Hafiz Saeed, or the notorious acquittal of Ahmed Omer Sheikh, the prime culprit of the Daniel Pearle Murder case of 2002. Pakistan, however, claims to have made virtue on 22 of the defined 27 points while has garnered ‘Substantial progress’ on the remaining 5 points. Thus, the optimism brews that the meeting would push the country out of the list and would open more financial avenues especially in these distressful conditions.
Although Pakistan’s Foreign Office including the Foreign Minister, Shah Mahmood Qureshi, appears optimistic to climb out of the grey list after 3 years, the infamous decisions passed by the Supreme Court of Pakistan, the excessive money laundering cases surging against the ex-office holders of Pakistan and the determined efforts of India to subvert Pakistan in global politics, all thwart down that optimism bit by bit. And while some of the economic experts claim that the decision of advancing Pakistan off the Grey list would be naïve move and would arguably impact regional dynamics, the decision could fall in tandem with the preceding outcome of sustaining the grey list status or could deteriorate the level further as gauged by a political expert, opining his narrative: “The facts demand that Pakistan remain on the grey list. The FATF shouldn’t just keep Pakistan on the grey list. It should rather warn Islamabad that absent rapid and wide-ranging reform; blacklisting is coming”.
Countering Terrorism: 2023 and Beyond
Pakistan has carried three significant issues from 2022 into 2023. These include political instability, a dwindling economy and resurging terrorism. With respect to terrorism, Afghanistan has assumed centre stage. Following the withdrawal of US forces on 15 Aug 2021, there was initial jubilation in Pakistan over Taliban’s triumph. It stemmed from the perception that US military presence in the region and drone strikes were the leading sources of regional instability.
2022 ended for Pakistan with an upsurge in terrorist activities and accordingly the New Year started with a meeting of the National Security Committee (NSC). The press release following the meeting reiterated NSC’s resolve to ‘have zero tolerance for terrorism in Pakistan and reaffirmed its determination to take ‘on any and all entities that resort to violence.’ This is a welcome decision by the government and state organs.
Pakistan’s counterterrorism (CT) efforts gained momentum following the unprecedented Army Public School (APS) massacre of 2014. Some have compared it to Pakistan’s 9/11. The tragedy was relatable to all of Pakistan regardless of the so-called ethnic, regional or sectarian divides. The inhumane attacks brought the civil and military leadership together in assigning this scourge of terrorism the priority that it deserved. The most prominent outcome was a National Action Plan on countering terrorism that enjoyed broadest possible political support.
Subsequently, the united stance against terrorism enabled unprecedented successes in rooting out terrorism. However, it appears that the reduction in terrorist activities led to a sense of complacency which was further aided by growing political polarisation that had more to do with differences on domestic, economic and foreign policy issues. Unfortunately, the US withdrawal from Afghanistan occurred at a time when Pakistan was struggling with internal politics. Apparently, the eventual prevalence of Afghan Taliban against a super power that they had been resisting for two decades, emboldened the Tehreek-e-Taliban Pakistan (TTP) to think that it could similarly attrite the Pakistani nation and its state organs.
TTP’s motivation seems to be misplaced for primarily three reasons. First and foremost, the Armed Forces and Law Enforcement Agencies (LEAs) of Pakistan are fighting this war to provide a safe and secure environment to the future generations of the country – including their own children; unlike the US and coalition forces that neither had a clear objective nor a consistent policy to follow. Second, much of Afghan Taliban’s acceptance at the domestic level was based on the fact that they were fighting a foreign occupant – which is not the case for TTP. Thirdly, the Afghan Taliban assumed power by virtue of force rather than the will of the public and that is why they struggle to gain legitimacy at home and abroad.
Pakistani political leadership might differ on the possible approaches to dealing with this issue, but there certainly is no appetite for letting the TTP and associated factions consolidate power to a degree that they are able to challenge state’s writ at a level comparable to yesteryears. However, display of a united front by the various ruling parties at the Centre and provinces will help demonstrate that there will be no tolerance for terrorist activities no matter which political party assumes power.
TTP’s threat against the leadership of two ruling parties is an attempt to exploit the current domestic political divide. Political mudslinging on this issue only helps the enemy’s cause. The ongoing struggle for power between the political parties should not enable TTP to consolidate power in the interim period. Otherwise, it will become a greater threat for the next government to deal with. During the previous election years, terrorist outfits were successful in targeting the leadership of various political parties during their election campaigns and arguably changing the election outcomes by terrorising the electorate. It is in shared interest of all the political parties to avoid a repeat of such a scenario.
While the politico-military leadership establishes a united front at home, it will be important to deny external actors the ability to exploit Pakistan’s internal situation. Pakistan has been at the receiving end of accusations even as it presents irrefutable evidence of external involvement in terrorist activities inside the country. As Pakistan continues to expose foreign involvement, it ought to simultaneously deny foreign actors fertile ground to exploit at home. Previously, the foreign threat was limited to the Eastern front but now it has expanded at an unprecedented level to the Western front where the Taliban government is either complicit or unable to check use of its territory to launch terrorist attacks against Pakistan.
2023 is likely going to be the year of General Elections in Pakistan. Whichever party assumes power, it is important that it looks at counterterrorism as a long-term operation that will require broader political support, less in-fighting and an ability to stay the course impervious of temporary gains and setbacks which will inevitably be a part of the process.
A Rift Getting Deeper: TTP and IEA parting their ways?
A few days ago, an alleged audio of Tahreek Taliban Pakistan (TTP) chief, Noor Wali Mehsud has caught the attention of those who keep a close eye on terrorist groups operating in Pakistan, especially Tahreek e Taliban Pakistan (TTP). Through this audio, Noor Wali has sent a message, to TTP fighters to pick up arms against the Islamic Emirate of Afghanistan (IEA) after its search operation in provinces along the Pak-Afghan border. Since the takeover of Kabul, some security analysts had predicted the possible collaboration of IEA with TTP. Still, the evolution of TTP strategies and its ideological shift from being a branch of IEA to being an opponent of IEA was observed. Only those who have kept a sharp eye on TTP activities know that TTP is now a threat to the Islamic Emirate of Afghanistan.
The reason behind the shift in TTP’s strategies:
What compelled TTP to give such a big statement? This question comes to everyone’s mind, the below discussion is made in context to this question. The ideological standing of both TTP and IEA is far different. Afghan Taliban are ethnic nationals. They have only fought a war against foreign forces for Afghan territory and have never claimed any region beyond the borders of Afghanistan. However, TTP has long taken inspiration from Al-Qaeda, which has expansionist objectives and deadly takfiri ideology to create a falsified identity of believers and non-believers, only to legitimize its terror activities in the name of Islam. Hence, following the footprints of such a radical organization, there is a significant possibility that TTP will join hands with ISKP against IEA.
Question of natural and forced alliance:
Since the Kabul takeover, TTP has tried to align with IEA, thus, giving it the camouflage of a natural alliance. TTP’s leadership also manifested this narrative in its statements and activities. But the ideological drift and conflicting objectives show that TTP’s so-called alignment with IEA was one-sided and enforced. After the Kabul takeover, TTP tried its well to be a part of IEA but by rigid stance, IEA always cleared in their statement that TTP and IEA are two different groups, having different inspirations and goals.
Pakistan’s role that TTP in using Afghan soil:
Pakistan has been fighting TTP since 2003. In April 2022, Pakistan Air Force (PAF) struck the hideouts of Tehreek e Taliban Pakistan along the Durand Line. This strike highlighted that a group within IEA was keen on providing safe havens to TTP. Hence, diplomatic pressure was mounted on IEA to eradicate TTP from the strategic provinces of Kunar and Khost.
Chance of Mutual tussle between TTP and IEA:
Is there another conflict going to happen in the region? Now, the battle is the same, but the opponents are different. The so-called narrative that claims IEA and TTP were on the same table is wrecking after TTP chief Noor Wali Mehsud and IEA spoke’s person Zabiullah Mujahid’s statements.” They are not, as an organization, part of IEA, and we don’t share the same objectives,” Zabiullah Mujahid said in reaction to TTP chief Noor Wali Mehsud’s claims of being a part of the IEA. Now, the TTP chief has alerted his fighters for war. It would create complexities in the region. IEA acted as a mediator between the government of Pakistan and TTP to make peace in the region. Additionally, Zabiullah mujahid also mentioned that We advise TTP to focus on peace and stability in their country. This is very important so, they can prevent any chance for enemies to interfere in the region, and we request Pakistan to investigate their demands for the better of the region and Pakistan.
Mujahid added that the TTP was Pakistan’s internal matter “The IEA stance is that we do not interfere in other countries affairs. We do not interfere in Pakistan’s affairs.”
After this emerging rift, would it be possible for IEA to counter TTP? IEA is struggling to stabilize the state after Kabul take over. Nowadays, Afghanistan’s security and economy are on the verge of chaos. It would not be able to engage in other conflicts nor do they have the power to do so. And if they engaged in battle with TTP, an alliance of ISKP and TTP can hurt Afghanistan. But if they counter them, there is a chance to get international sympathy and maybe recognition because it will endorse the Doha agreement, as Recognition has become a dire need in Afghanistan.
In a nutshell, it won’t be inappropriate to assume that another war will break out, and it is likely more drastic than the last ones. Despite all the hurdles, it is an opportunity for IEA to gain global sympathy for its recognition and to legitimize its regime. If the IEA becomes successful in convincing the world by taking action against terrorist outfits and extremism in its ranks, it will not only pave the way for its recognition but also meet with the minutes of the DOHA Accord to not allow any violent non-state actor to operate within Afghan territory.
Pakistan in a quagmire: Resurgence of terrorism along with its relations with Afghanistan
When Taliban took over Kabul in August 2021, a large faction of the Pakistani society including mainstream politicians amused the fact that reins of Kabul had become in control of Taliban. One obvious reason for this felicitation was the much awaited perceived stability in neighboring Afghanistan which had direct impact on Pakistan. The other reason for jubilation in some factions was about the solidarity with regards to the identity of Afghan people. As brotherly nation, perseverance of Afghan people against the scourge of prolonged war, that too against the strongest military alliance, was a matter of inspiration for many in Pakistan. However, the formal response of the government was very much aligned with the global response. Islamabad did not officially recognize the interim government of Taliban. The eventful month of August, 2021 was followed by some key developments.
Considering the geo-political change in the neighboring Afghanistan, Pakistan started to rethink its strategy at the western border. Through a backdoor channel, Islamabad approached the Taliban government to ensure the security of its western border from the hideouts of TTP living in Afghanistan. In short, Pakistan wanted the Taliban government to take strong action against TTP. However, in response to that, Kabul with TTP onboard, came up with a “quid pro quo plus” approach. It urged the Pakistan’s government to have a formal agreement with TTP which later on proceeded through a back door channels. In the agreement, TTP agreed for so called cease-fire along and inside Pakistan’s territory in exchange for cessation of Pakistan’s military operation against TTP. Moreover, the strangest of demands that Pakistan agreed to, was providing, the previously expelled TTP associates, with permission to come back and reside in districts of the tribal area. On the other hand, second critical development following the fall of Kabul, was Pakistan’s stance in the international community with respect to humanitarian concerns in Afghanistan. Pakistan’s foreign minister repeatedly urged the International community to establish a meaningful dialogue and engagement with the fragile state of Afghanistan to help the people of Afghanistan. He frequently argued that alienation of a rouge actor prompts even harsher human rights violation by that actor. Hence the world should not neglect Afghanistan and the people of Afghanistan Rather, it should accept the reality and engage with Afghanistan.
However, it is extremely unfortunate to write that, both the aforementioned developments, gave rise to a Pro-Taliban sentiment vis-à-vis Pakistan. Nevertheless, the same sentiment has often been misrepresented in the western literature, and the same narrative has also been used to demonize Pakistan at the international forums. However, in reality Pakistan had been the most affected country by terrorism and it had been fighting against the scourge of terrorism since over a decade now. What is even more unfortunate is that in the recent past, TTP announced to resume its nefarious terrorist activities in Pakistan. As a result, a spike in terrorist events specifically in KPK province has been witnessed. The December 21st,2022 military operation is a testament to aggravating law and order situation in the country, in which a group of 25 TTP associated terrorists had been killed, while holding a CTD compound, hostage in Bannu.
Because there is a resurgence of terrorism coupled with the international criticism due to perceived relations with Afghanistan under Taliban. “Pakistan is appeared to be in a quagmire.”
Now, what Pakistan can pursue to undo this, is to redevise a comprehensive plan of action against terrorism in KPK and former FATA. It should also formulate a clear strategy at the western border not to tolerate any presence as well as influx of militants from Afghanistan. Moreover, for future, the state of Pakistan should also learn from the abysmal agreement that it went in with a Non-State Actor (NSA). For NSA’s an agreement is nothing more than a concealing tool for a limited survival. It is because of the three reasons. First, an agreement is always done between two responsible actors; terrorist group like TTP has no burden of responsibility neither in a domestic setting nor at the international level. Whereas, a sovereign state has immense responsibility at the domestic and international level. Second, an agreement between two states holds significance because of the perceived repute in the international system, Whereas, for a non-state actor like TTP, International reputation never comes into the equation as such groups are already infamous for their terrorist agenda. Third, States are mostly bound to stick fast to their bilateral or multilateral agreements, because of the fear of diplomatic and economic sanctions once they pull back from the agreement. Whereas in case of Non-state actors, there exist no such incentive to remain in the agreement.
Considering all the three reasons, it is quite evident that engaging with TTP for so called ceasefire agreement was neither viable nor will it ever be, particularly because, as a state, Pakistan would have to offer a lot in exchange to absolutely nothing. Moreover, because of such an agreement, Pakistan would itself invite criticism from the already skeptical international community. Hence for Pakistan, no tolerance policy against terrorism is the only option possible in order to lower domestic and international cost simultaneously.
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