India to push FATF to put Pakistan under its ‘grey list’, oppose World Bank funding for Islamabad - Report

India is set to approach global financial crime watchdog, the Financial Action Task Force (FATF), to put Pakistan under the “grey list” of the institute, a new report said on Friday.

According to the report by Reuters quoting a senior government official in New Delhi, India is pushing the FATF to put Pakistan in its “grey list”.

The development comes a month after the Pahalgam terror attack, where 26 people, mostly tourists, were killed when terrorists opened fire on them.

In addition to pushing the FATF, New Delhi will further oppose the upcoming funding for Pakistan from the World Bank, Reuters reported quoting the source.

In January this year, the World Bank had come into an agreement with Islamabad to lend $20 billion to the economically struggling nation over the coming 10 years on development issues like the impact of climate change as well as boosting private-sector growth.

What is FATF grey list?

As per another report by PTI, a source confirmed that New Delhi will be taking up the issue with FATF.

Countries that fail to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing, and are under increased monitoring, are placed in the FATF grey list.

Pakistan was taken off the FATF grey list in 2022, which gave confidence to global lenders to disburse loans to cash-strapped Islamabad.

When the FATF places a jurisdiction under the grey list, and therefore increased monitoring, it indicates that the country has vowed to swiftly resolve the identified strategic deficiencies within agreed timeframes.

The FATF meets thrice a year – in February, June and October – to make decisions.

Pakistan was placed in the FATF's grey list in 2018 and had given an action plan for the country to curb money laundering and terror financing.

India opposes IMF's Pakistan bailout

Earlier, the International Monetary Fund had approved a $1 billion loan to Pakistan notwithstanding New Delhi's apprehensions that the funds could be used for cross-border terrorism.

India's Defence Minister Rajnath Singh on May 16 pressed the IMF to reconsider the financial assistance, saying Islamabad could use a large part of it to fund the terrorist infrastructure.

IMF on Friday justified its decision, saying that Islamabad had met all the conditions and targets set by the lending body for it to approve.

The IMF carried out a review of its extended fund facility (EFF) granted to Pakistan in September last year and based on it, the board approved the amount on May 9, said Julie Kozack, a director at global body's communications department.

Kozack in a press briefing said that the IMF had made its decision after the review.