There is a good news for investors in Pakistan stock exchange (PSX). As I wrote about worst times of PSX these days and continuous down trend from last 3 months, there is at last some good news which can help the market take some support as investors' confidence will be gained if the news outcome is also good.
Source: google.com
Below is the details of the news.
FATF in an unsurprising move has retained Pakistan amongst Jurisdictions under Increased Monitoring, commonly known as the “Grey List”. The message was similar to previous ones of encouragement on reforms undertaken by the authorities while calling the Govt. to meet extended requirements.
Source: google.com
At present, Pakistan is compliant on 26 out of 27 counts on the initial action plan set in Jun’18, while in an unparalleled swiftness has achieved progress on 4 out of 7 directives delivered in the previous meeting. The focus has now clearly shifted towards demonstration of implementation of TF and ML laws.
Source:pixabay.com
As per the FATF standards, Pakistan seems to have achieved compliance with majority of the 40 recommendations under MER Evaluation Criteria opening up prospects for improvement in effectiveness ranking. Hence, a strong possibility exists for Pakistan to elevate itself from the existing group in the medium run, bench marking timeline to recent up-gradation of Mauritius.
The latest FATF review may be a non-event for the market with all eyes set on ongoing IMF review defining the tone of the market in the near term. It is advised to have accumulation in Banks (on monetary tightening due to be realized going forward) followed by Construction sector (on possible normalization in input costs with upbeat demand) and Textiles (on currency devaluation).
Hope the post will be informative for the investors.
Disclaimer: I am not a financial advisor and this post is for information purpose only. I will not be responsible for any kind of capital loss on any investment.
Regards & Thanks,