This is not so much about economic reforms as it is about politics. Surely economic reforms are needed, but that is just an excuse. There are nations in the world today which have a terrible economic framework. Much worse than Pakistan. They are not sanctioned or put on any list. This is about something else.
The Western nations want to put Pakistan under economic pressure. For years Western think tanks have advised and lobbied their governments to put economic pressure on Pakistan. This is nothing new. It is scripted and totally expected.
Pakistan will only get off this list if it accepts Western list of demands. Until then nothing will happen. Next FATF meeting will be the same. They cannot nor want to blacklist Pakistan. That would defeat the purpose and make Pakistan do desperate things. The goal is to squeeze Pakistan slowly, but hard enough to send the message home. Pakistan won't accept and just ride along knowing this. Pakistan has little choice. The choice it has is tough and very difficult
In my opinion, time has come to make some radical changes. Pakistan has to take some tough decisions. It needs to break relations with hostile nations. That includes hostile Western nations in bed with India. Highly unlikely that the leaders in Pakistan will ever do this, but this would be the right decision. It will be a rough road for Pakistan, but the long term benefits will be very fruitful if Pakistan invested in regional relationships.
