Can we Expect Pakistan be Back to on FATF's Grey list Soon?
India is expected to advocate for placing Pakistan in the grey list again at the Financial Action Task Force’s (FATF) plenary meeting in June 2025, in France, citing Pakistan's non-compliance with terror financing regulations.
Consequence:
Inclusion in this list can potentially limit a country’s access to international loans, which are actually used in terror funding by Pakistan's Govt.
In this context, it is important to note that Pakistan has secured a $7 billion bailout (Rs.59000 crores Indian money equivalent) from the International Monetary Fund (IMF) last year, and a new $1.4 billion arrangement In May 2025, under the guise of building economic resilience to climate vulnerabilities and natural disasters.
Background behind this Request from India:
On 22nd of April 2025, in Pahalgam of Jammu and Kashmir UT, terrorists based Pakistan, slaughtered 26 Indian civilians mostly Hindu tourists, based on religion of the victims. The Resistance Front, an arm of Lashkar-e-Taiba claimed responsibility. TRF is part of the terror ecosystem that Pakistan has nurtured for decades.
On 7 May, India launched Operation Sindoor, a series of surgical strikes designed to neutralise the terrorist camps and infrastructure that was behind the Pahalgam massacre. While India targeted Terrorist Infrastructures alone in this operation (clear proof of which has been shared by India's Defence forces), Pakistan on behalf of its terrorists, peddled fake propaganda suggesting that its military facilities were targeted but Pakistan could not establish proof of any of its lies. All it could quote were, clip from video games and social media posts.
The very existence of these terror elements within Pakistan's borders, in spite of getting grey listed for its terror funding activities for 3 times between the years 2008 to 2022, exposes the fact that pakistan continues to remain terror Hub. India's request for grey listing Pakistan, is primarily driven by serious concerns about Pakistan's continued support for terrorism and terrorist financing emanating from its territory.
Additional Information:
According to the South Asia Terrorism Portal (SATP), Pakistan is home to 83 proscribed terrorist organisations. Of these, 45 remain active, spreading violence not only in India but across Asia and far beyond. Majority of it are indigenous creations and others are trans-national networks that Islamabad’s ruling establishment and its army, openly courts or covertly protects. (Source: DD news)
Financial Action Task Force (FATF) is an inter-governmental body to examine and develop measures to combat money laundering and terrorist financing and other related threats to the integrity of international financial systems.