Pakistan Gray List: India’s action against Pakistan is likely to continue. India has already made announcements ranging from breaking the Indus Water Treaty to banning the airspace. Now the problems of the neighboring country can already increase the difficulties of the economically constrained. There are reports that India can try to re -include Pakistan in the gray list of Financial Action Work Force (FATF). Apart from this, Pakistan may also suffer a shock in terms of assistance from the International Monetary Fund.
Pakistan is misusing money for nefarious activities
According to reports, India is considering taking two big steps. The first of these is to include Pakistan in the FATF gray list and raise objection to the International Monetary Fund (IMF) aid package of $ 7 billion. In the IMF case, India may claim that Pakistan is misusing money for terrorist attacks and nefarious activities.
India needs support from other FATF member countries to include Pakistan in the gray list. It is approved by its full session, which makes all decisions for FATF. Generally, this full session is held three times a year, February, June and October. The special thing is that joining this list means that it will have a huge impact on FDI and capital flow.
Pakistan was on the gray list of FATF till June 2018, but was removed from the list in October 2022. According to the report, the Government of India officials say that this will help prevent illegal funds coming to India through Pakistan. Pakistan is not a member of FATF, but is part of the Asia Pacific Group (APG) on money laundering. Whereas, India is a member of APG as well as FATF.
