ISLAMABAD – Washington last week persuaded member states of the FinancialAction Task Force (FATF) to place Pakistan back on the “grey list” ofnations with inadequate terrorist financing or money laundering controls.Pakistan was on the list for three years, until 2015.

The diplomatic setback has sparked anger in Islamabad against UnitedStates, which championed the motion against Pakistan at the FATF meeting inParis. It represented another blow to the worsening relationship betweenthe uneasy allies.

Miftah Ismail, who led Pakistan’s negotiations in Paris, told Reuters thatWashington did not seem genuinely eager to see Pakistan boost its terroristfinancing regulations and was instead bent on humiliating the country.

“If the Americans were interested in working with us and improving our CTF(counter-terrorist financing) regulations, they would have taken the offerI was making them,” Ismail said. “But their idea was just to embarrassPakistan.”

Ismail said that he urged the United States to allow Pakistan until June tofix any outstanding CTF issues and ceded ground in negotiations to strike adeal, but that the US was determined to see Pakistan suffer.

He said Pakistan’s law-enforcement shortcomings are often confused for lackof desire, especially at provincial level, where police officers are poorlytrained when it comes to terrorist financing legislation.

“The will is there,” he added.

The advisor to PM ruled out Pakistan’s retaliating against Washington overthe FATF listing. He said the country would keep working to improve its CTFcapabilities and win the confidence of Britain, Germany and France, whoco-sponsored the US motion in Paris.

Pakistan hopes to be removed from the grey list in six to 12 months fromJune, when it will be officially placed on the watch list, Ismail added.

The PM’s aide said he did not foresee the FATF decision acting as a brakeon Pakistan’s economy, which, with growth above 5 percent, is expanding atits fastest pace in a decade.

“I would rather not be in the list, but I don’t think it will hurt”economic growth, Ismail said, adding that ordinary Pakistanis would not seeany impact from the FATF move.

He pointed out that Pakistan’s economic growth accelerated even during theperiod the country was last on the watch list. From 2012-2015, exports andforeign currency reserves expanded, while its stock market shot up by morethan 200 percent, he said.

“We are focused on improving our economy and overcoming this littlehiccup,” Ismail said. “We will continue on our path forward.”

Later during his appearance on Geo News show ‘Aaj Shahzeb Khanzada KaySaath’, the PM’s aide said, “We are not in any list at present. Thedecision has been made to put Pakistan on a monitoring and reporting list,commonly known as grey list.

“There has been a perception that if we were not included in the grey listthen we would be put on the black list. There is no question about that,given all what we have done, including anti-money laundering laws,anti-terrorism laws [made] in Pakistan.”

Ismail said that after all this, it is impossible to put Pakistan on theblack list.

He clearly stated that “between now and June” Pakistan is not included inany list, adidng, “There is no reporting requirement nor we have to doanything in this period.”

Ismail said they informed all the concerned countries, including those fourstates behind the proposal against us, about measures taken by Pakistan.”They said that you took quite long and that they do not have an analysisof all this.”

He further said that they grey list does not impose any sanctions and so itwould not impact Pakistan’s economy.