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Pakistan faces risk of corruption-related money laundering | The Express Tribune
IMF reports says Pakistan’s anti-money laundering enforcement compromised by political pressure, weak oversight
An employee counts Pakistani rupee notes at a bank in Peshawar on August 22, 2023. Photo: Reuters
The International Monetary Fund has said that Pakistan faces significant risks of corruption-related money laundering, while accountability remains weak, as high-profile or politically sensitive cases often face external interference that limits the independence of investigations.
“Pakistan faces significant risks of corruption-related money laundering. High-risk sectors include banking, real estate, construction, politically exposed persons, and public procurements,” states the Governance and Corruption Diagnostic Report released by the Ministry of Finance on November 19.
The report added that the misuse of corporate vehicles, shell companies, and informal value transfer systems are common techniques used to conceal the origins of corruption proceeds in Pakistan.
The International Monetary Fund (IMF) said judicial constraints have further weakened enforcement outcomes, with delays in prosecution, lengthy trial processes, and low conviction rates reducing the deterrent effect of anti-money laundering (AML) enforcement.
While highlighting the persistent and corrosive nature of corruption in Pakistan, the IMF also acknowledged that shifting demographics — with 60% of the population under the age of 30 — and disruptive communication technologies are reshaping public tolerance for corruption.
“Politicians are recognising that addressing corruption is crucial to addressing citizens’ concerns for better service delivery,” the report noted.
The Fund added that over 60% of Pakistan’s 247 million people are below the age of 30, increasingly urbanised, and active on social media. This emerging demographic is less deferential and more sceptical of government institutions.
“Young people are increasingly likely to vote. These changing dynamics are focusing attention on service delivery, how services are delivered, and who has access to them.”
The IMF said Pakistan has taken some steps to enhance financial sector oversight in line with AML and counter-terrorism financing priorities. Reforms have improved risk-based supervision by financial regulators through targeted on-site and thematic inspections to assess banks’ compliance with AML obligations, particularly in high-risk areas such as Politically Exposed Person (PEP) onboarding and Suspicious Transaction Report (STR) generation.
However, it said “high-profile or politically sensitive cases often face external interference, limiting the independence of investigations and undermining public confidence in accountability mechanisms.”
For corruption-linked money laundering complaints, NAB’s turnaround time is four months just to open a formal enquiry. A complaint must first undergo a rigorous administrative vetting process before an investigation can be launched — a process that often results in complaints not being pursued, the report noted.
The IMF highlighted multiple implementation challenges that hinder full enforcement of the AML framework. These include weak institutional coordination, poor enforcement of preventive measures, and gaps in operational follow-through.
It added that the absence of strong institutional accountability mechanisms has weakened overall system effectiveness. There is no clear framework to assess the performance of authorities in preventing money laundering linked to corruption.
Pakistan informed the IMF that, during 2023–2024, monetary penalties amounting to more than Rs944 million were imposed on 17 banks for money laundering-related violations. But the IMF said public concerns persist regarding the impartiality of key AML enforcement institutions.
“Stakeholders frequently cite concerns about impartiality and selective enforcement of AML obligations, particularly when politically exposed persons or high-level officials are involved.”
“Supervisory and enforcement agencies do not appear to collect or publish disaggregated statistics on corruption-linked suspicious transactions, inspections, investigations, or sanctions,” the report said.
The IMF also commented on the FBR’s capacity to regulate Designated Non-Financial Businesses and Professions (DNFBPs). “The FBR’s capacity to supervise DNFBPs is particularly constrained, given the number of entities under its remit and the limited staff available for inspections and outreach.”
Some DNFBPs — especially in the real estate sector — are considered high-risk for facilitating corruption-based money laundering. Without sufficient staffing and technical expertise, supervision in these areas is likely to remain reactive and inconsistent, the Fund said.
The IMF added that Pakistan’s law enforcement agencies continue to face persistent challenges in pursuing corruption-linked money laundering cases. The NAB and FIA share the mandate to investigate and prosecute corruption-related money laundering, but both agencies often lack sufficient trained personnel in these specialised areas.
Beneficial Ownership remains hidden
Pakistan was required to publish the names of beneficial owners of companies to ensure greater transparency.
“The SECP is responsible for overseeing the beneficial ownership framework and is yet to establish a registry to maintain BO information,” the report added. Verification mechanisms for beneficial ownership data also remain underdeveloped, according to the IMF.
The SECP requires legal entities to declare that beneficial ownership information is maintained at the time of incorporation, upon any change of ownership, and annually. However, the IMF said that actual beneficial ownership information is often not declared, and there is limited evidence of systematic verification or auditing of these disclosures.
The IMF noted that public access to beneficial ownership data is not readily available, which limits transparency and accountability. Although the public may submit a Form-19 declaration to request beneficial ownership information, such approvals are rare, according to the lender.
It added that beneficial ownership data is not publicly accessible in Pakistan, reducing opportunities for independent scrutiny. The Fund further noted that recent amendments to data privacy laws now allow law enforcement agencies to obtain beneficial ownership information.
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HDFC Bank now offers airport lounge access via digital vouchers for debit cards, with a doubled Rs 10,000 quarterly spend. Physical card swipes are discontinued.
HDFC Bank Doubles Spend Requirement for Complimentary Lounge Access
HDFC Bank Airport Lounge Access Rules 2026: HDFC Bank has revised the rules for complimentary airport lounge access on its debit cards, shifting to a voucher-based access system and increasing the minimum spending requirement. The changes have come into effect from today, January 10.
Until now, eligible debit cardholders could enter airport lounges by swiping their physical card. Under the new system, lounge access will be granted only through digital vouchers, issued to customers who meet the spending criteria.
Once eligibility is confirmed, the bank will send an SMS or email with a link to claim the voucher. Customers will need to complete OTP verification using their registered mobile number. After successful verification, a voucher code or QR code will be issued, which must be shown at the lounge for entry.
Minimum Spend Doubled For Most Cards
HDFC Bank has doubled the quarterly spend requirement for complimentary lounge access on most debit cards.
Customers must now spend Rs 10,000 or more per calendar quarter from Rs 5,000 earlier. The spend can be through single or multiple transactions, online or offline. The revised spending condition does not apply to the Infiniti Debit Card, which continues to offer lounge access without any minimum spend.
Complimentary Lounge Visits Remain Unchanged
The number of free lounge visits will continue to depend on the debit card variant:
Millennia Debit Card: 1 visit per quarter
Platinum Debit Card: 2 visits per quarter
Times Points Debit Card: 1 visit per quarter
Business Debit Card: 2 visits per quarter
GIGA Debit Card: 1 visit per quarter
Infiniti Debit Card: 4 visits per quarter
Only purchase transactions made using the debit card will count toward the quarterly spend. The following are excluded, Moneycontrol noted:
ATM Cash Withdrawals
- UPI or wallet payments (GPay, PhonePe, Paytm, etc.)
- Credit card bill payments via debit card
- Debit card EMI transactions
- New debit cardholders will also need to meet the Rs 10,000 spend threshold to become eligible.
Voucher Validity And Lounge Rules
Once issued, lounge vouchers will remain valid until the end of the next calendar quarter.
For instance:
Voucher generated on November 15, 2025 → valid till March 31, 2026
Voucher generated on January 10, 2026 → valid till June 30, 2026
Lounge access will continue on a first-come, first-served basis, with lounges retaining the right to impose stay limits—typically two to three hours—or deny entry due to operational, safety or regulatory reasons.
What this means For Customers
HDFC Bank’s updated lounge access programme places greater emphasis on higher card usage and digital verification. Customers who rely on complimentary lounge benefits will need to closely track their quarterly spending and note that physical debit card swipes will no longer work from January 10.
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January 10, 2026, 14:26 IST
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Business
What Is Core-and-Satellite Strategy And How Can It Help Investors Navigate Market Volatility?
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The ‘core’ typically makes up around 60–70% of a portfolio and is meant to deliver stable returns while serving as its foundation.
Small and mid-cap stocks produced 14-17% returns in the last 20 years. (representative image)
Navigating financial markets often seems like an uphill task as investors need to balance the desire for growth with the fear of sudden downtrends. When markets fall, people struggle to find the right direction while chasing high returns and protecting their wealth from volatility. Too much risk can lead to panic mode, while excessive caution could leave your portfolio lagging behind inflation and long-term goals.
A practical solution here is the core-and-satellite strategy emerges as a practical solution. Under this, investors get to combine a stable “core” of diversified, low-cost investments with the dynamic “satellite” portion to target higher-growth opportunities. Not only does it allow them to achieve resilience and flexibility, but the strategy also ensures steady progress even during turbulent times. By following this dual approach, people can cushion portfolios against market downfalls.
How Does It Work?
According to Moneycontrol, the “core” usually accounts for nearly 60-70 per cent of the portfolio. It is specifically designed to provide steady returns and act as the anchor of your portfolio.
It comprises stable, low-cost funds:
1. Large-cap equity funds: Your hard-earned money gets invested in established companies having proven business models. Often, it is seen that they appear to fall less compared to mid and small-cap funds.
2. Flexi-cap funds: The fund managers keep shuffling the investment between large, mid and small caps, depending on the ongoing condition of the market. In simple terms, these add flexibility and diversification to the portfolio.
3. Hybrid funds: A combination of equity and debt, these are meant for growth and stability.
However, investors must note that even the “core” is not free from risk. Moneycontrol report highlights how markets fell nearly 14 per cent between October 2024 and February 2025.
The Role of Satellite Investments
Keeping core aside, the remaining 30-40 per cent is what makes up satellite investments.
“The satellite portfolio allows tactical exposure to high-growth sectors, themes, or strategies,” the report quoted Kirang Gandhi, a Pune-based financial mentor, as saying.
This includes mid-cap and small-cap funds that hold higher growth potential. Also, it features international equity funds.
This highlights that it is the growth engine of the portfolio, but also carries substantial risk.
A key part of the core-and-satellite approach is “balance,” where the core allows the money to grow steadily and the satellite portion adds more potential without putting the portfolio at risk.
In the last 20 years, the small and mid-cap indices have generated nearly 14-17 per cent returns on an annual basis, leaving behind large-cap indices. Investors must note that falls are more frequent in mid and small-cap stocks.
Using the core-and-satellite strategy, investors get to diversify their portfolio without making it too complicated.
Kirang Gandhi said this strategy combines safety with smart opportunity for Indian investors and avoids overexposure.
“It brings structure, discipline, and clarity to long-term wealth building without chasing trends,” Gandhi concluded.
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January 10, 2026, 13:40 IST
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BENGALURU: Masayoshi Son-led SoftBank Group pared its holding in Ola Electric Mobility to 13.5% from 15.6%, in what appears like a staggered exit from the electric 2-wheeler maker that was once among its marquee India bets. SVF II Ostrich (DE), a SoftBank affiliate and Ola Electric’s second-largest shareholder after founder Bhavish Aggarwal, sold 9.4 crore shares through open market transactions between Sept 3, 2025, and Jan 5, 2026, according to a regulatory filing.
HDFC Bank Changes Debit Card Lounge Access Rules From Today: What Cardholders Must Know
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