New Delhi: Pakistan has managed to garner much-needed support from three member states of the Financial Action Task Force (FATF) to avoid being placed on its blacklist, a report in Pakistan’s Dawn newspaper said on Thursday.
Islamabad has been on the global money laundering watchdog’s radar since June 2018, when it was placed on a grey list for terrorist financing and money laundering risks after an assessment of the country's financial system and security mechanism.
A meeting of the FATF plenary is currently underway in Orlando in the US.
Turkey was the only country that had opposed the move backed by the United States, the United Kingdom and India. However, Islamabad’s longtime ally, Beijing abstained, the Dawn report said.
New Delhi has been pushing for Pakistan to be placed on the blacklist given its support for terrorist groups targeting India. It has sought “verifiable" and “irreversible" action from Pakistan on terrorist groups targeting it.
According to the 36-nation FATF charter, the support of at least three member states is essential to avoid the blacklisting. And Islamabad requires at least 15 out of 36 votes to move out of the watchdog’s grey list, which is causing an estimated loss of $10 billion per year, the Dawn newspaper said.
Staying in the “grey list" means Pakistan will find it difficult to source foreign investments. Last month, Islamabad negotiated a new $6 billion loan from the International Monetary Fund to bail itself out of a balance-of-payments crisis.