OIC

Origin and founding of the OIC

■ Known to be second largest organization of the world.
■ The formation of the OIC happened shortly after the 1967 Arab-Israeli War. Leaders of
Muslim nations met in Rabat to establish the OIC on September 25, 1969.
■ It was formed on September 25, 1969 in response to fire-raising attack on mosque al
Aqsa in Jerusalem by Zionist extremist.
■ Its priorities are promoting the interests of Muslim communities across the world and
fighting islamophobia, especially in the western world.
■ OIC members represent 22 per cent of the world population, have 2 per cent of the
world's GDP, 1.3 per cent of the world trade and only 1.5 per cent of the investments.
STRUCTURE OF OIC
Islamic summit

• It is the supreme authority of the OIC and members of the Summit are head of the government
and Head of state.

• The conference is held to consider issues of critical importance to the Muslim world
and formulate policies on them which are implemented by the organization.

• Islamic summit is held once in every three year.

Council of Foreign Ministers
 It is held once a year.
 Reviews progress of the decisions of the previous meetings and summits

 It approves budgets

 It talks about the present geopolitical situation of Muslim countries specifically

Palestine and Kashmir.
Rest of the institutions

■ Standing Committee
■ General Secretariat
■ Secretary General
■ Specialized institutions
AIMS OF OIC
 To safeguard people of the member states and Muslims.
 Strengthen Islamic solidarity.
 Consolidate Cooperation among members states in social, cultural and scientific
fields
 Safeguard the Holy places.
 Support the struggle of the Palestinian people.
 Eliminate racial discrimination and all forms of colonialism
Challenges to OIC
 Difficulties in coordination.

 Geographically dispersed (Africa, Asia, Middle East, Southeast Asia)

 Politically diverse. (Islamic Republics, Monarchies, Democracy, Military

Dictatorships)

 National Income differences (Richest like Saudi Arabia and poorest Afghanistan)

 No implementation body

 Only unifying force is Islam

 Every country of OIC has their own agenda

How can OIC be improved
■ By empowering the organization with decision making power.
■ By putting their own differences aside
■ More focus on economic development and poverty alleviation
■ Taking a practical stand against every atrocity against Muslim communities around the
world
FATF
■ An inter-governmental body to develop and promotion of policies to combat money
laundering and terrorist financing i.e. to strengthen its AML/CTF regime.

■ The Task Force is therefore a "policy-making body" which works to generate the
necessary political will to bring about national legislative and regulatory reforms in
these areas.

■ FATF was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially
to examine and develop measures to combat money laundering.

■ In October 2001, the FATF expanded its mandate to incorporate efforts to combat
terrorist financing, in addition to money laundering

■ The FATF has developed a series of recommendations(40+9) that are recognised as the
international standard for combating of money laundering and the financing of terrorism
and proliferation of weapons of mass destruction
How Does FATF work?
■ Monitors the progress of its members in implementing necessary measures

■ Reviews money laundering and terrorist financing techniques and counter-measures

■ Promotes the adoption and implementation of appropriate measures globally

■ Collaborates with other international stakeholders, the FATF works to identify

national-level vulnerabilities with the aim of protecting the international financial
system from misuse.
Lists of FATF
■ Grey List
■ Black List
■ Risks involved in being the part of the black list:
– Banking Sector will be effected
– Financial investors will be cautious about the volatility and the scrutiny
– Financial institutions might move out
– Slow flow of transactions will further hurt the slow economy.
– Global fiacial isititos might get reluctant while lending money.
Important Recommendations Countries
have to Follow:
■ Identify the risks, and develop policies and domestic coordination;
■ Pursue money laundering, terrorist financing and the financing of proliferation;
■ Apply preventive measures for the financial sector and other designated sectors;
■ Establish powers and responsibilities for the competent authorities (e.g., investigative, law
enforcement and supervisory authorities) and other institutional measures;
■ Enhance the transparency and availability of beneficial ownership information of legal
persons and arrangements; and facilitate international cooperation.
What Does FATF Wants Pakistan to Do?

■ Demonstrate that authorities are cooperating ad they have enough human and financial
resources to strengthen AML/CFT regime.
■ Demonstrate that judiciary is taking stern actions involving money laundering and terror
financing and those decisions must strengthen AML/CFT regime.
■ Demonstrate that LEA are pursuing cases against people and organizations involved in
such crimes ad that they are taking actions to stop them from resurfacing again
■ Demonstrate compliance of Resolution 1267 and 1373 of UNSC
Points to Ponder?

■ Is FATF a political tool?

■ Is it beneficial for Pakistan to implement all those recommendations?
IMF
What is IMF and What are its objectives
■ In Bretton Woods Conference 1945,IMF was made as an financial arm alongside World
Bank to regulate the global economy.
■ Objectives:
– Stable exchange rates
– Stabilizes international monetary systems
– Fosters global financial cooperation so funds are available for countries facing
Balance of Payments.
What it Does? And How?
■ It provides short term loans to the countries facing Balance of Payment
What is Balance of Payments?
Functions of IMF:
– Economic and Financial surveillance
– Technical assistance and training- fiscal ,monetary and exchange rate policy
– IMF lending-short term under ten programs
– Research and data
Pakistan and IMF
■ Pakistan has gone to the IMF 21 times since 1947
■ 14 times it has gone after 1988
■ 12 out of 21 times have been the bailout packages
■ Pakistan has had a chequered history with IMF because of lack of political will and half
hearted implementation of the recommendations of the IMF
What happens when Pakistan goes to
IMF
■ Pakistan formally ask IMF to lend the money when then starts its evaluation program.
■ After evaluation ,IMF comes up with its Structural Adjustment Program tailored
according to the Pakistani economy.
■ It includes:
– Privatization of SOE’s
– Reduce corporate taxes
– Reduce subsidies
– Ease of doing business
– Increase in the revenue through taxes
– Liberalize trade
– Free floating currency
Why Do we keep going to IMF?
■ Exports industry down
■ Insufficient taxes class collection
■ Lack of political will