Country to be put back on terror funding list

Aglobal money-laundering watchdog has decided to place Pakistan back on its terrorist financing watch list, a government official and a diplomat said yesterday, in a likely blow to Pakistan’s economy and its strained relations with the US.

The move is part of a broader US strategy to pressure Pakistan to cut alleged links to militants unleashing chaos in neighbouring Afghanistan and backing attacks in India.

It comes days after reports that Pakistan had been given a three-month reprieve before being placed on the list, which could hamper banking and hurt foreign investment.

The US has spent the past week lobbying member countries of the Financial Action Task Force (FATF) to place Pakistan on a so-called grey list of nations that are not doing enough to combat terrorism financing.

Campaign insufficient

Pakistan had launched last-minute efforts to avoid being placed on the list, such as taking over charities linked to a powerful Islamist figure. But the campaign proved insufficient and the group decided late on Thursday that Pakistan would be put back on the watch list, a senior Pakistani official and a diplomat with knowledge of the latest FATF discussions said.

“The decision was taken yesterday. The chair [of FATF] is expected to make a statement some time this afternoon in Paris,” the diplomat said. Both officials spoke on condition of anonymity.

Pakistan was on the list for three years until 2015. Earlier in the week China, Turkey, and the Gulf Cooperation Council (GCC) were opposing the US-led move against Pakistan but by late Thursday, both China and the GCC dropped their opposition, the diplomatic source said.