ISLAMABAD, Feb (TNS): The prospect of Pakistan being placed back on a global terrorist financing watch list could endanger its handful of remaining banking links to the outside world, causing real financial pain to the economy just as a general election looms.
Washington and its European allies have co-sponsored a motion calling for Pakistan be placed on a “grey list” of countries deemed to be doing too little to comply with anti-terrorist financing and anti-money laundering regulations, with a decision expected next week when member states of the Financial Action Task Force (FATF) meet in Paris. The move is part of a broader U.S. strategy to pressure Pakistan to cut its alleged links to militants waging chaos in Afghanistan. Pakistan, which denies such links, last month shrugged off a U.S. aid suspension worth $2 billion (£1.4 billion). But inclusion on the FATF watch list could inflict real damage, bankers and government officials say. Islamabad has sought to head off the motion by amending its anti-terrorism laws and by taking over organ Pakistan could face economic pain if placed on FATF watch list
