ISLAMABAD – India’s recent attempt to push Pakistan back onto the Financial Action Task Force (FATF) grey list has failed, as the global watchdog chose not to downgrade the country’s status. Instead, FATF decided to keep Pakistan under a “reporting” mechanism, acknowledging its continued progress in tackling money laundering and terrorist financing.
During the latest FATF session, Indian representatives actively lobbied for Pakistan’s re-inclusion in the grey list. However, Pakistan received strong support from several key countries, including China, Turkey, and Japan, which blocked India’s move and helped maintain Islamabad’s current standing.
Sources revealed that India, with backing from Israel, tried to use the FATF platform to isolate Pakistan diplomatically. Yet, most member states dismissed these efforts, calling them politically motivated and praising Pakistan’s ongoing reforms in its anti-money laundering and counter-terrorism financing systems.
Finance Minister Muhammad Aurangzeb called India’s attempt another diplomatic failure, stating that international support for Pakistan reflects trust in its commitment to financial transparency. He also announced that the World Bank has approved funding for the Reko Diq mining project, signaling further international confidence in Pakistan’s economy.
India had ramped up its anti-Pakistan campaign following Operation Bunyamum Marsoos, using its diplomatic missions to spread negative narratives. However, these efforts failed to gain global traction, as FATF members prioritized technical progress over political pressure.
The FATF, an international body responsible for combating financial crimes, continues to monitor Pakistan’s reforms through a reporting system. Meanwhile, Islamabad remains focused on strengthening its financial systems and maintaining global trust.