The Express Tribune Editorial 1 August 2019

Choking terror funding

Pakistan is a step closer over choking terror funding in line with the requirements of the Financial Action Task Force (FATF). The National Assembly’s Standing Committee on Finance has unanimously cleared two revised bills seeking amendments to the anti-money laundering law and foreign exchange regulations as part of measures to ensure compliance with the action plan sought by the global anti-money laundering watchdog based in Paris. The two parliamentary bills are aimed at strengthening the existing laws on money laundering and foreign exchange control to make them more stringent to fight money laundering and regulate foreign exchange transactions to meet standards of the 37-member inter-governmental organisation.

The proposed amendments to the anti-money laundering law mean that the money laundering crime will now be punishable with rigorous imprisonment of up to 10 years as well as a fine up to Rs5 million. And in line with the amendments proposed over foreign exchange regulations, the inland movement of foreign exchange valuing at $10,000 and above would require prior approval from the State Bank of Pakistan. The NA committee’s nod to the two revised bills only came after a threadbare discussion spanning months, and that too after amendments like requiring investigation officers to produce court warrant before arresting suspects. The real test, however, awaits the government in the Senate Standing Committee on Finance which is controlled by the opposition.

It is expected that our politicians would rise above petty political interests to act in the interest of the country which is racing against time to come good on the FATF action plan. Having gone past two deadlines — January 2019 and May 2019 — without complying in full, Pakistan now faces the October 2019 deadline. It’s when the global money laundering watchdog will take another review of Pakistan’s progress on some 10 remaining items on the 40-point action plan. On failure to convince the Paris-based task force, Pakistan — currently on the FATF grey list since June 2018 — is unlikely to spare the blacklist which also comprises the likes of Iran and North Korea, and which means global economic sanctions.

Poison on sale

Unlike many government entities that exist only in name, the Punjab Food Authority (PFA) is doing good work to protect the health of people. It seized 50,000 litres of toxic cooking oil the other day from two trucks, and sealed the oil mill’s branches in Lahore and Hasilpur. The PFA Director General, Captain Mohammad Usman (retd), said the oil was prepared after mixing used oil with animal fat and bones, which are highly harmful to human health. The PFA sealed the mill for violating the provincial food law. The poisonous oil was supplied to restaurants, hotels and other oil mills, claims the PFA official.

Such oil can only be used in biodiesel, and consuming edible oil mixed with toxic oil can cause grave health issues for humans. It mainly causes liver and heart diseases. Lately, the PFA had raided a factory where baby diapers and things like these were being manufactured by recycling hazardous hospital waste. Earlier, it had foiled an attempt at transferring quality foodstuff from warehouses of the Utility Stores to private warehouses. Possibly the plan was later to shift rotten stuff from private warehouses to Utility Stores’ warehouses.

Fifty thousand litres of toxic edible oil show the extent of food adulteration in the country. The media has been warning people of the increasingly dangerous trend of food adulteration. How unscrupulous traders adulterate foodstuff with toxic items in their blind pursuit of profit. We have to bear in mind many people have meals and snacks in eateries and to the health risks they are exposed. Many are compelled to eat in restaurants because their families don’t live with them. Now adulteration has touched new heights as even when desperate people buy poison to commit suicide, the poison does not work. It turns out to be fake. Sometimes shopkeepers sell poison for consideration of extra money. In most cases, this too is counterfeit.

Restoring roti price

It shows Prime Minister Imran Khan cares for the common people. On the instructions of the PM, the federal cabinet announced on July 30 that the prices of roti and naan would be reduced to the level that prevailed about a few months ago. In Pakistan, roti and naan are the staple for the majority of the people. Dr Firdous Ashiq Awan, Special Assistant to the Prime Minister on Information, said the PM had called a meeting of the Economic Coordination Committee the following day where decisions to reduce gas rates, especially for tandoorwalas, and to cut atta (wheat flour) price would be made as part of the plan to provide the people roti, naan and other food items at affordable prices.

At present, naan is selling at Rs12 to R15 and roti at Rs10 to Rs12 in various cities of the country. The prices rose after the increase in gas tariff and the price of wheat flour. Earlier, naan was priced at Rs8 to Rs10 and roti at Rs7 to Rs8. Traders, however, tried to make it appear that food prices were rising as a result of the petroleum price hike and the erosion in the value of rupee against the US dollar. This was pulling wool over the eyes of the people. This year Pakistan has a wheat stock of 27.9 million tonnes, which is more than the national requirement of 25.8 million tonnes.

It is the unscrupulous middlemen who mainly drive prices upwards with the aim of reaping huge profits. They buy wheat and other commodities at low prices, hoard them and later sell at exorbitantly high prices. In this regard the FBR chairman’s efforts aimed at documentation of the economy are admirable. The documentation of the economy will ensure fair trade practices and proper taxation. The PM and his team know food prices play an important role in running the affairs of state in a tranquil manner.