In a major diplomatic setback for Pakistan, the Financial Action Task Force (FATF) has condemned the recent Pahalgam terror attack, exposing Islamabad’s continuing role in enabling cross-border terrorism. This strong indictment by the global watchdog has bolstered India’s case to push for Pakistan’s re-inclusion in the FATF grey list, given its persistent failure to dismantle terror financing networks.

Despite repeated international warnings, Pakistan remains a safe haven for extremist groups, using financial conduits to fund carnage on Indian soil. The latest statement by the FATF has once again laid bare the duplicity of a Pakistan that speaks of peace while nurturing jihadist machinery.

Analysts opine that due to a significant tactful and forceful push post Operation Sindoor, India is preparing to mount pressure on the FATF to re-include Pakistan in the grey list, citing fresh and irrefutable evidence of Islamabad's continued support for cross-border terrorism.

At the heart of India’s charge is the revelation that dreaded terrorists like Masood Azhar continue to enjoy state protection in Pakistan, in clear violation of FATF’s 27-point Action Plan, to which Islamabad had once agreed as a condition for exiting the grey list in 2022.

But while the evidence may be compelling, the geopolitics of FATF are rarely dictated by morality alone. As India sharpens its case, the looming question is whether the United States, with its strategic interests in Pakistan, will intervene again to shield Islamabad from punitive action.

Pakistan’s brief escape from the grey list in October 2022 was facilitated by technical compliance and diplomatic cushioning. However, its relapse into old habits now threatens to reignite scrutiny.........

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