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SEPT 16 was another sad day in parliament when legislators from the
treasury and the opposition almost came to blows while the opposition
openly expressed lack of trust in the speaker who normally enjoys, or
should enjoy, bipartisan respect despite his affiliation to the ruling
party. The opposition strongly rejected the result of the counting of
votes on controversial legislation which was passed by a thin majority
of 10 in the joint session of parliament and staged a walkout which
facilitated the passage of eight bills in quick succession, three of them
relating to the commitments made by the government to be taken off
the Financial Action Task Force (FATF) grey list.
The need for effective legislation to counter money laundering and terror
financing had existed for a long time but it became urgent when the FATF
placed Pakistan on the enhanced monitoring list commonly known as the
grey list in June 2018. Pakistan consequently made a high-level political
commitment to the Asia Pacific Group on money laundering (APG) to
strengthen its anti-money laundering and countering terrorists financing
(AML/CFT) regime and to address its strategic deficiencies.
Why does parliament wait until the eleventh hour to pass legislation?
It was, however, only during the past six months or, to be specific, since
Babar Awan was re-inducted as the prime ministerʼs adviser on
parliamentary affairs in April that the relevant legislative business acquired a
higher level of urgency in view of the upcoming FATF review in October.
Pakistan had received a serious warning in February 2020 when the official
FATF announcement had noted that “All deadlines in the action plan had
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expired. While noting recent and notable improvements, the FATF again
expresses concerns given Pakistanʼs failure to complete its action plan”. It
went on to add that “The FATF strongly urges Pakistan to swiftly complete
its full action plan by June 2020. Otherwise, should significant and
sustainable progress especially in prosecuting and penalising [terrorist
financing] not be made by the next plenary, the FATF will take action, which
could include the FATF calling on its members and urging all jurisdictions to
advise their [financial institutions] to give special attention to business
relations and transactions with Pakistan.”
This was a serious warning but the government still took months before it
scrambled to take action and when finally it did, there was no time for
niceties to discuss the proposed legislation threadbare with the opposition in
and out of the standing committees and develop consensus. The continuing
legislative trend, therefore, seems to be to not act in time and wait until the
eleventh hour and then use ‘urgencyʼ to avoid serious debate in parliament
and its committees.
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The trend which one can discern from the two examples is that a number of
legislative initiatives are prompted by international entities like APG/FATF and
IMF. It is not precisely known how many laws will eventually be required to be
passed by parliament to satisfy their requirements but so far at least 11
FATF-related laws have been passed by parliament. These laws may be
legitimately required for the good of the country but why should Pakistan
wait for a nudge from these international entities to spring into action, and
why canʼt the executive and legislature safeguard national self-respect to
initiate legislation on their own rather than use the name of these agencies
to steamroll legislation at the last minute?
Chances are that the government may eventually go into emergency mode
to hurriedly pass amendments to NAO, 1999, in a reactive legislation if and
when the superior courts take up the case once again.
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president@pildat.org
Twitter: @ABMPildat
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