As US scrambles to put Pak on terror watchlist, watchdog gives 3-month pardon

Islamabad:  Pakistan has been given a three-month reprieve by a global watchdog over a US-led motion to put the South Asian country on a terrorist financing watchlist, Pakistan's Foreign Minister Khawaja Asif said late on Tuesday.

Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the Financial Action Task Force (FATF), a measure that officials fear could hurt its economy.

FATF member states have been meeting this week in Paris, where it was expected that they would decide on a US motion, backed by Britain, France and Germany, to have Pakistan added to the so-called 'grey list' of countries which are not doing enough to comply with terrorist-funding regulations.

Also Read: Does US want to place Pak on global terrorist-financing watchlist for India?

Khawaja Asif, who is currently on a visit to Russia, tweeted late on Tuesday that Pakistan's "efforts have paid (off)" during a February 20 meeting on the US-led motion, suggesting there was "no consensus for nominating Pakistan".

He also suggested the meeting proposed a "three months pause" and asked for the Asia Pacific Group, which is part of FATF, to consider "another report in June".

Pakistan earlier in 2018 submitted a report about the progress it had made in curbing terrorist financing, but Washington submitted its motion before the Pakistan report could be discussed at the Paris hearing.

"Grateful to friends who helped," Asif added.

Two other Pakistani officials confirmed that Pakistan had received a reprieve of three months.

Also Read: Pak ‘seeking to destabilise India, Afghanistan’: US lawmakers

Washington has been threatening to get tough with Islamabad over its alleged ties with Islamist militants, and in January President Donald Trump's administration suspended aid worth about USD 2 billion.

Islamabad, which denies assisting terrorists in Afghanistan and India, has reacted angrily to US threats of further punitive measures.

However, Pakistan's government is concerned the FATF decision could hurt its banking sector, causing real financial pain to the economy just as a national election looms.