Categories: Business

Pakistan does not meet minimum requirements in financial transparency case, US released report


pakistan less transparent on financial issues

Washington An official US report states that Pakistan does not meet the minimum requirement of financial transparency. It alleges that Pakistan does not adequately disclose government debt guarantee obligations. The report said that funding to government enterprises under the $ 60 billion China-Pakistan Economic Corridor (CPEC) project has also not been explicitly disclosed.

CPEC is an ambitious plan of China-Pakistan, in which a planned network of roads, railways and power projects are to be built. Under this, China's resource-rich Xinjiang Ughur Autonomous Region will be connected to Pakistan's strategically important Gwadar port. This port of Pakistan is in the Arabian Sea. The project began when Chinese President Xi Chinping visited Pakistan in 2015. It is an important part of Xi's billion-dollar ambitious Project Belt and Roads Initiative (BRI).

The US State Department's 2020 Financial Transparency Annual Report, released on Monday, says that Pakistan is also among those countries that are not taking any initiative towards meeting the minimum requirements in terms of financial transparency. The name of Bangladesh is also included in other countries of South Asia region. Apart from this, the names of Saudi Arabia, Sudan and China are also included in this list. The report said that out of 141 countries evaluated in this world, 76 countries including India meet the minimum requirements in terms of financial transparency.

Two governments, Samoa and Togo, met the minimum requirement in 2020 before they did not meet in 2019. At the same time there are governments of 65 countries which do not meet the minimum requirements in terms of financial transparency. However, 14 out of these 65 governments have made a significant beginning in this direction. It said that during the review period, the Government of Pakistan made its budget proposals, budget and year-end report available to the general public. It is also available online but it has limited information about the debt obligations of the Government of Pakistan.

Companies that have been blacklisted by the World Bank have been awarded contracts in this. This will increase the debt burden of the country (Pakistan). However, Pakistan has dismissed the criticism of the US, saying that the project has helped the cash-strapped Pakistan to bridge the gap in energy, infrastructure, industrialization and employment generation. Some projects under the project have been completed, while some others have been delayed as Pakistan and China are working on operational and financing details of the project.

This post was published on June 16, 2020 1:31 pm

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