India is preparing to present a detailed dossier to the Financial Action Task Force (FATF) highlighting Pakistan’s involvement in terror financing, aiming to push for Pakistan’s re-inclusion on the FATF grey list. This dossier is scheduled for discussion at the FATF’s upcoming meeting in June. Alongside, India plans to urge the World Bank next month to reconsider any future financial aid to Pakistan, citing concerns over misuse of funds.
Sources reveal India possesses substantial evidence tying Pakistan to the international drug trade and its financing of jihadist groups through proceeds from narcotics. This includes documented proof of Islamabad’s connections with drug cartels funneling money to terror outfits operating within its borders.
The FATF grey list includes countries facing heightened scrutiny due to insufficient efforts to combat money laundering and terrorist financing. Pakistan was on this list from 2018 until its removal in 2022, but India continues to assert that Pakistan has not made meaningful progress in combating terror networks within its territory.
The renewed focus comes after a deadly terror attack in Pahalgam, Jammu and Kashmir, in April, where 26 civilians lost their lives. The attack was claimed by The Resistance Front, a proxy group linked to Pakistan-based Lashkar-e-Taiba.
Meanwhile, the International Monetary Fund (IMF) has defended its recent disbursement of $1 billion to Pakistan under the Extended Fund Facility program. The IMF stated that Pakistan met all reform conditions despite ongoing cross-border tensions following India’s Operation Sindoor, which targeted terror sites in Pakistan and PoK. India strongly opposed the IMF’s aid, with Defence Minister Rajnath Singh calling it indirect funding of terrorism.
