What happened?
India is preparing to urge the Financial Action Task Force (FATF) to re-add Pakistan to its “grey list” during the upcoming June 2025 plenary session. This move follows India’s concerns over Pakistan’s alleged non-compliance with commitments to curb terror financing, particularly regarding UN-designated terrorist groups operating from its territory. India is compiling a detailed dossier highlighting these concerns to support its case.
In addition to the FATF initiative, India plans to oppose forthcoming World Bank funding for Pakistan, aiming to limit Islamabad’s access to international financial assistance.
Why it matters to India
Re-listing Pakistan on the FATF grey list would subject it to increased monitoring and could restrict its access to global financial markets, thereby exerting economic pressure. India’s actions reflect its broader strategy to hold Pakistan accountable for alleged support of cross-border terrorism and to deter future incidents by leveraging international financial mechanisms.
These developments occur amid heightened tensions between the two nations, with India emphasizing the need for Pakistan to take verifiable actions against terrorism to restore trust and stability in the region.