India wants Pakistan back on FATF grey list, to block package country gets from World Bank

NEW DELHI: In response to the terror attack in Pahalgam, India retaliated to Pakistan through Operation Sindoor. Now India is planning to further cripple the country economically. Report says the main goal is to block the $20 billion package that Pakistan is expected to receive from the World Bank in June. The report says India will ask the World Bank to block the package.

Along with this, India is also preparing to approach the Financial Action Task Force (FATF), an international agency for monitoring terrorist financing. India may also consider including Pakistan in the grey list, a list of countries that support terrorists. If that happens, there will be a significant reduction in foreign investments and capital flows to Pakistan. This will be a severe setback for Pakistan, which is already on the verge of bankruptcy.

Pakistan was put in FATF’s grey list in June 2018. Pakistan was removed from the list in October 2022 on the assurances of the ruling party. The government had assured that those associated with terrorist groups had been imprisoned and their assets confiscated.

Pakistan is still suffering the consequences of its first grey listing. The country is in a state of financial distress. The Arab countries that used to provide aid are now showing little interest in Pakistan. In addition, the backlash from Balochistan and the cancellation of the Indus Water Treaty are also troubling Pakistan.