The State Bank of Pakistan (SBP) has refused to open the Afghanistan Relief Fund and requested the federal government to review its decision, expressing the fear that the Financial Action Task Force (FATF) might impose sanctions against Islamabad. The federal government had decided to open the bank account to receive cash donations from Pakistan and abroad to help Afghan people meet their immediate humanitarian needs. Subsequently, on December 8, the Finance Ministry issued instructions to the SBP to “open with immediate effect” the Afghanistan Relief Fund to provide humanitarian assistance to Afghanistan. Read: Pakistan mulls options to keep Afghan banks afloatThe federal government had requested the SBP governor that he should issue necessary instructions to the scheduled banks to open the account. A Finance Ministry official said that the government might review its decision to open the account after the OIC also pledged to set up a humanitarian trust fund for Afghanistan.

Source: The Express Tribune January 15, 2022 07:35 UTC