ISLAMABAD - Pakistan has failed to complete 25 of the 27 action points given by the international terror financing watchdog FATF to check funding to terrorist groups such as LeT and JeM and frontal groups like Jamat-ud-Dawah and Falah-e-Insaniat Foundation.
With this, multilateral lenders like the IMF, the World Bank and the EU may continue downgrading Pakistan, making its financial situation more precarious.
The Paris-headquartered Financial Action Task Force has asked Pakistan to explain whether it has launched any investigation into the USD seven million allocated to maintain schools, madrasas, clinics and ambulances originally operated by terror groups like Lashkar-e-Taiba, Jaish-e-Mohammad, and LeT fronts Jamat-ud-Dawah and Falah-e-Insaniat Foundation.
JuD and FIF are founded by terror mastermind Hafiz Saeed.
Pakistan is in deep trouble at the FATF meeting beginning Sunday in Florida in the US, people aware of the development said.
"It has been unable to complete 25 of its 27 action points. It has one last chance, till its 15-month deadline ends in October 2019, when the FATF Plenary will be held," one of them added.
In June 2018, Pakistan was placed in the 'Gray' list and given a 27-point action plan by FATF .
This plan was reviewed at the last plenary in October 2018 and for the second time in February this year, when the country was again put into the 'Gray' list after India submitted new information about Pakistan-based terrorist groups.
The FATF continuing Pakistan in the 'Gray' list means its downgrading by IMF, World Bank, ADB, EU and also a reduction in risk rating by Moody's, S&P and Fitch.
This will add to the financial problems of Pakistan, which is seeking aid from all possible international avenues.