ISLAMABAD- If Pakistan fails to submit an action plan, or if the plan isnot accepted by the FATF, it faces the possibility of being placed in theblack list along with North Korea and Iran, However there seems very lesspossibility for that.

Pakistan on Wednesday confirmed that the Financial Action Task Force (FATF)is set to include it in a watchlist of nations not doing enough to curbterror financing and said it will come up with an action plan to tackle theproblem.

Foreign Office spokesman Mohammad Faisal told a weekly news briefing inIslamabad that the financial watchdog had decided to place Pakistan on its“grey list” during a plenary meeting in Paris last week.

“Pakistan will be placed on the grey list in June, but there is currentlyno chance of placement on the black list,” Faisal said, adding an actionplan to eradicate terror financing is being prepared and will be sharedwith the FATF.

The FATF has asked Pakistan to take additional steps to curb moneylaundering and terror financing and the country will cooperate with thewatchdog in every possible way.

There was considerable confusion in Pakistan after the FATF voted at theplenary to place Pakistan on the grey list and the matter was not mentionedin the official statement issued after the meeting. Officials said this wasbecause certain formalities, such as the framing of an action plan, need tobe completed before Pakistan’s inclusion in the watchlist.

A move backed by the US, the UK, Germany and France to put Pakistan in thegrey list was blocked during preliminary discussions at the FATF meeting byChina, Turkey and the Gulf Cooperation Council.

After the US and its allies intervened with China and Saudi Arabia, whichwas voting on behalf of the GCC, and the matter was put to vote again,Pakistan was backed only by Turkey. The development embarrassed Pakistanileaders, including foreign minister Khawaja Asif, who had tweeted that thecountry had been given a reprieve.

Faisal said Pakistan has taken steps to remove deficiencies in its regimeto counter money laundering and terror financing. He cited the presidentialordinance that was quietly passed days before the FATF meeting to amend theAnti-Terrorism Act to include all UN-listed individuals and entities inPakistan’s list of banned groups and persons.

Pakistan was included in the FATF’s grey list in 2012 and removed threeyears later, after it took some steps to counter terror financing. Pakistanwill now have to follow come up with an action plan by May. Once the FATFapproves the action plan, it will make a formal announcement about placingPakistan in the grey list in June.