ISLAMABAD, Sept 19: US Treasury Secretary John Snow on Friday praised Pakistan’s efforts to curb the channelling of funds to terrorists, highlighting new laws for traditional money transfer networks once favoured by terror groups.

“I think that the government of Pakistan has made enormous strides,” Mr Snow said.

“The president (Pervez Musharraf) has made it clear that Pakistan wants to be and is in the forefront of the war on terror and terrorist finance.”

The Secretary arrived in Islamabad from Kabul late Thursday for a series of talks with President Pervez Musharraf, Prime Minister Zafarullah Jamali, and Finance Minister Shaukat Aziz. He is on a 10-day tour of the Middle East and South Asia.

“We are very pleased by the strong support that Pakistan has made on the terrorist and terrorist money front,” Mr Snow told participants of a press conference after talks with Aziz.

Snow underlined Islamabad’s moves to regulate Hawalas, which were considered a prime source of fund transfers for terror organisations.

“Evidence of (Pakistan’s commitment) is the strong action that has been taken on money-laundering, and the registration and regulation of Hawala networks,” Snow said.

Mr Snow visited a newly-regulated Hawala set up in a branch of the National Bank of Pakistan, where officials briefed him on efforts to “bring transparency in foreign exchange transactions,” a finance ministry official told AFP.

The finance minister said the prevention of money laundering in Pakistan, which still has no law against the practice, was a major discussion point.

Mr Aziz insisted that Pakistan needed the cooperation of other countries to fight illegal money transfers, saying “it takes two to tango”.

“Money comes from various countries, from one or two sectors, then they come to the recipient country.

“If money comes from country A through country B to country C, all three have to sing the same tune and that is not happening today. There is (this) one frustration.”

Mr Snow also urged Pakistan to keep contributing to the reconstruction of Afghanistan, and discussed economic cooperation between Washington and Islamabad.

Mr Snow also met Pakistani business leaders to “explore the potential of increased cooperation between the private sectors of respective countries,” the finance ministry official said.

The Treasury Secretary will depart later Friday for Dubai to attend the International Monetary Fund and World Bank annual meetings.—AFP