Pakistan was put back on the terror financing 'grey list' by the Financial Action Task Force on Friday. With China staying neutral the fortunes of the country plunged and the United States sponsored motion managed to go through.
However, Pakistan will get on the list from June 2018. Until then the country has time to make changes in their actions against terror groups. This is the reason why Pakistan was not mentioned in the final statement of the FATF. However, sources indicated that the country would be put on the list at the next plenary in June.
Pakistan was on the FATF watch list from 2012 to 2015, then only on issues of money laundering.
The US was working behind the scenes during the ongoing Paris meeting of the Financial Action Task Force (FATF) so as to take action against the country which it believes has not acted against terrorist financing and the implementation of the UN Security Council resolutions.
It may be recalled that Pakistan's foreign minister had claimed two days back that they had been given a three-month reprieve. He had also said that hard negotiations had paid off.
The US says Pakistan is not taking action against terror groups like the Haqqani network and the Taliban. Islamabad has denied those allegations.
Pakistan being added to the "list of countries deemed 'high risk' for doing too little to curb terror financing," would have a financial implication for the country.
As a result of this inclusion, banks, other lenders and international companies seeking to do business with Pakistan could rethink financial ties, putting a damper on its already struggling economy.