Pakistan will remain on the 'grey list' of global terror funding watchdog, the Financial Action Task Force. The watchdog has said that Islamabad needs to further demonstrates that action is being taken against Jamaat-ud-Dawah chief Hafiz Saeed and Jaish-e-Mohammed founder Masood Azhar who are listed as global terrorists by the United Nations.
The decision came following the virtual meeting of the FATF Plenary which was attended by delegates from 205 countries and observer organisations including the IMF and the UN.
Addressing a post-plenary conference, FATF President Dr Marcus Pleyer announced that Pakistan remains on the "increased monitoring list", which is another name for the “grey list”.
He said Pakistan has two concurrent action plans with a total of 34 action plan items. "It has now addressed, or largely addressed 30 of the items." Pakistan was placed on the grey list by the FATF in June, 2018 and was given a plan of action to complete it by October, 2019. Since then the country continues to be in that list due to its failure to comply with the FATF mandates.
The FATF in June retained Pakistan on its 'grey list' for failing to check money laundering, leading to terror financing, and asked Islamabad to investigate and prosecute leaders and commanders of the UN-designated terror groups, including Saeed and Azhar.
It also asked Pakistan to work to address its strategically-important deficiencies.
With Pakistan's continuation in the grey list, it is increasingly becoming difficult for the country to get financial aid from the International Monetary Fund, the World Bank, Asian Development Bank and the European Union, thus further enhancing problems for the country.
Pakistan has so far avoided being on the blacklist with the help of China, Turkey and Malaysia.
In a statement, Pakistan said that the FATF in its review recognised considerable progress made by Pakistan on both the Action Plans.
Pakistan was placed on the grey list by the FATF in June, 2018.