Kashmir Issue

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

 Kashmir Issue
Kashmir sold to Gulab Singh by the British after
1846: treaty of Amritsar.

Indian Independence Act grants sovereignty to all

1947: 562 princely states.

Partition riots in Jammu and Kashmir.

1947:
War on Kashmir starts
1947:
26 Oct, Maharaja Hari Singh accedes to India with
1947: 78% Muslim population.

India goes to Security Council.

1948:
21 April, UNSC Resolution on Kashmir. UNSC 47
1948: resolution.

1 Jan, cease fire signed between the two countries.

1949:
UN mediated Karachi agreement decided the ‘cease
1949: fire line’ uptil the Siachen glacier.

Dixon plan.
1950:
Pakistan India War
1965:
CSS Pakistan Affairs by Syed Noor Hussain (PAS)
Kashmir Issue
Ceasefire line renamed Line of Control after Simla agreement. The issue of Kashmir became
1972: bil-lateral from multilateral, Which means that UN, US, Russia, China cannot be involved.

Siachen conflict
1984:
Rigged State elections
1987:
Freedom struggle starts.
1988:
Kargil war. P
1999:
BJP comes to power.
2014:
On 8 July 2016, a militant leader Burhan Muzaffar Wani was cornered by the security forces
2016: and killed. Following his death, protests and demonstrations have taken root leading to an
"amplified instability" in the Kashmir valley. (Burhan Aftermath)
Uri Attack resulted in deaths of 19 Indian soldiers.
2016:
Pulwama attack killed 44 indian soldiers resulting in India Pakistan military standoff.
2019:
5 Aug: Modi Govt Strips special status of Kashmir Article 370 and 35A
2019
Pulwama attack and Balakot Strike
2019
CSS Pakistan Affairs by Syed Noor Hussain (PAS)
 Article 370 and
35-A Revocation
2019
• Jammu and Kashmir Reorganisation
Act, 2019
• The Jammu and Kashmir
Reorganisation Act, 2019 is an
act of the Parliament of India
containing provisions to
reconstitute the State of
Jammu and Kashmir, a part of
the larger region of Kashmir
which has been the subject of
dispute among India, Pakistan,
and China since 1947, into two
union territories called Jammu
and Kashmir, and Ladakh.

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

Situation on
Ground

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

Policy Actions that can be taken by Pakistan

Possible Policy actions

Highlight Indian
Diplomatically isolate
Human Rights Abuses
India
on International Level
Raise Awareness on
Media Campaigns Track II diplomacy
International Level

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

 FATF

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

What is FATF?
• The Financial Action Task Force, also known
by its French name, Groupe d'action
financière, is an intergovernmental
organization founded in 1989 on the initiative
of the G7 to develop policies to combat
money laundering.
• Total 39 members
• 40 recommendations on Money Laundering
and 9 Special recommendations on Terrorism
Financing
• Recommendations cover the criminal justice
system, Law enforcement, international
cooperation, regulation of financial system

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

Objectives of FATF

Controlling

Nuclear
Terror Financing Money Laundering
Proliferation

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 FATF Lists FATF Lists

• Grey List Jurisdictions under

• Jurisdictions under increased monitoring are actively High-Risk Jurisdictions
Increased Monitoring
working with the FATF to address strategic deficiencies in
their regimes to counter money laundering, terrorist
financing, and proliferation financing. When the FATF places
a jurisdiction under increased monitoring, it means the
country has committed to resolve swiftly the identified
strategic deficiencies within agreed timeframes and is Black List Grey List
subject to increased monitoring. This list is often externally
referred to as the “grey list”.
• Black List
• High-risk jurisdictions have significant strategic deficiencies 22 Countries including
in their regimes to counter money laundering, terrorist Iran & North Korea
financing, and financing of proliferation. For all countries Pakistan
identified as high-risk, the FATF calls on all members and
urges all jurisdictions to apply enhanced due diligence, and,
in the most serious cases, countries are called upon to apply
counter-measures to protect the international financial 3 Votes required to get 15 votes to get out of
system from the money laundering, terrorist financing, and
proliferation financing (ML/TF/PF) risks emanating from the out of Blacklist grey list
country. This list is often externally referred to as the “black
list”.

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

 • Money laundering, Terror Financing and proliferation
• Vienna convention, Terrorist financing convention, Palemero convention
• Predicate offense
• Targeted financial sanctions UN Security Council Resolutions 1267(1999)
and 1373(2001)
• Non profit organisations with terror financing abuse
• Asset freezing

40 • Clandestine diversion of funds from non profit organizations

• Customer Due Diligence CDD
Recommendations • No anonymous accounts or in fictitious names.
• Adequate customer identification data
of FATF • Source of funds
• New accounts, transactions
• Record keeping by financial institutions
• Monitor wire transfers
• Financial Intelligence Unit FIU
• Cross border transportation of currency.
• International Mutual Legal assistance.
• Extradition and dual criminality

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How does FATF achieve its objectives?

40
recommendations

International
Criminal Justice Regulation of
Banking System Law enforcement financial Legislations
System financial system
cooperation

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Pakistan and FATF

• Pakistan is not a member state of FATF: instead,

it is a FATF Associate Member of the
Asia/Pacific Group on Money Laundering
(APG).
• Greylist from 2012-2015
• Greylist since 2018
• Pakistan has fulfilled 26 out of given 27 agenda
items
• China, Malaysia and Turkey vote for Pakistan
hence Pakistan will not go into the Blacklist

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 Actions taken by Pakistan

Actions taken by
Pakistan

Amendment in Anti Financial Monitoring

Amendment in Anti Amendment in Customer Due Billions of fines on
Money Laundering Unit in State Bank of Changes in SECP rules
Terrorism Act 1997 Companies Act 2017 Diligence CDD Banks
Act 2010 Pakistan

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 • A tool by western countries to control other countries
• Pakistan has achieved 26 out of 27 agenda points but
still retained in the Grey List
Criticisms • Ignores India’s state sponsored acts of terrorism in
Pakistan
• India’s clout in FATF

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 IMF

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

What is IMF?
• The International Monetary Fund (IMF) is an international organization that
provides financial assistance and advice to member countries.
• The IMF was established in 1944 in the aftermath of the Great Depression of the
1930s. 44 founding member countries sought to build a framework for
international economic cooperation.
• The IMF came into existence in 1944. Along with the World Bank, it was created
to bring financial stability to the world following World War II
• When member countries run into trouble, they can turn to the IMF for advice and
financial assistance.

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

Objectives of IMF
• systematic mechanism for foreign exchange transactions
Objectives of IMF

Create and maintain Systematic mechanism

Promote balanced
International Monetary for foreign exchange Foster investment
global economic trade
System transactions

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

How Does IMF Achieve its Goals?
• systematic mechanism for foreign exchange transactions
How Does IMF Achieve its Goals?

Actions on Macroeconomic Policies of Country

Regulatory
Financial assistance to deal Structural
Exchange Governmen Credit and Surveillance
with Balance of Payments Crisis Adjustment
Rates tal Budgets Management Structural of Economy
by restoring Foreign Reserves Programs SAPS
Policies

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

Pakistan and IMF
• Pakistan joined in 1950
• Pakistan has gone to IMF 22 times
• 2019: Current Government took $6
billion plan for three years because of
Current Account deficit of $18 billion

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

 Conditions of IMF
• systematic mechanism for foreign exchange transactions
Conditions of IMF on Pakistan in return for $6 billion program

Devaluation
Sharing of Pakistani Withdrawal
Privatisation IMF loan will
Increased details of Rupee: Elimination of tax Reducing
Impose more of Public not be used
energy tariffs Chinese market of energy exemptions: govt
taxes Sector to pay
20% financing determined subsidies Revenue expenditures
Enterprises Chinese debt
CPEC exchange mobilization
rate

CSS Pakistan Affairs by Syed Noor Hussain (PAS)

 Criticisms of IMF
• systematic mechanism for foreign exchange transactions
Criticisms

Reduction of Govt
Devaluation has Public feels the Removal of High electricity Increase in Privatization of
Jobs and
caused Inflation main impact subsidies charges Taxation National assets
Expenditures

CSS Pakistan Affairs by Syed Noor Hussain (PAS)