The development comes after the Paris based Financial Action Task Force took Pakistan off its inglorious grey-list on Friday. The global money-laundering watchdog announced its decision in a summary document issued ahead of its press conference.

“Pakistan has strengthened the effectiveness of its AML/CFT regime and addressed technical deficiencies to meet the commitments of its action plans regarding strategic deficiencies that the FATF identified in June 2018 and June 2021, the latter of which was completed in advance of the deadlines, encompassing 34 action items in total

Pakistan is therefore no longer subject to the FATF’s increased monitoring process. Pakistan will continue to work with APG to further improve its AML/CFT system,“ it said.

The dollar closed at Rs220.84 in the interbank market on Friday, the State Bank of Pakistan reported.

The stock exchange market witnessed a positive trend after it gained 350 points and was trading at 42,500 in the KSE-100 index.

Hina Rabbani Khar, the minister of state for foreign affairs, said on Friday that Pakistan’s exit from the FATF’s ‘grey list’ would give a much-needed boost to the economy and increase the economic and financial engagement with the outside world.

Economist Kaiser Bengali agreed with the expectations that the FATF development would give a boost, however, he added that it was not expected to have an immediate effect on the economy.

“The decision will help remove the uncertainty that currently grips the overall investment climate in the country,” he said last week.

He cautioned that high inflation and interest rates would prevent a sudden inflow of cash.