ISLAMABAD: Pakistan has plugged almost all loopholes in its financial system to curb terrorist financing and money-laundering as per the requirement of the Financial Action Task Force (FATF) to get off the financial watchdog’s gray list, said the government’s Economic Advisory Council member, Dr. Ashfaque Hasan Khan, as a final evaluation of the country’s progress report on the twin issues began in Bangkok on Sunday.
Last year, the FATF placed Pakistan on a gray list of countries with inadequate terror funding controls. In June, the watchdog said Pakistan had until October to improve its financial operations. If the South Asian nation does not comply with an agreed-upon action plan by then, it will be blacklisted and face sanctions that are going to hurt its economy and exports.
Led by Federal Minister for Economic Affairs Hammad Azhar, Pakistan’s economic team is holding a face-to-face meeting with the FATF’s Asia Pacific Group (APG) in Bangkok for a final evaluation of its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) system. The meeting will continue till September 10.
“We have done a lot, plugged almost all loopholes in our financial system [to curb terror financing and money laundering] and are quite confident to get off the FATF’s gray list,” Khan said.
“Our economic team is well-equipped to answer all the questions of the APG members in Bangkok,” he said. “On the basis of this evaluation, the FATF will decide in October whether to keep us [Pakistan] on its gray list or downgrade to the blacklist.”
Khan said that Pakistani authorities in the last one year had initiated “effective actions” against proscribed outfits, charity organizations and militant factions to choke their sources of funding.
In the meantime, the State Bank of Pakistan imposed a fine of over Rs850 million on 10 private banks due to various “deficiencies” in their AML/CFT systems and for violating laws related to foreign exchange.
“This shows our resolve to strengthen our financial system as per the requirements of the FATF and other global institutions,” he added.
According to the 36-nation FATF charter, the support of at least three member states is essential to avoid blacklisting. India – Pakistan’s arch-rival and a co-chair of the joint group of FATF and its Asia Pacific Group – has been pushing for Islamabad’s blacklisting.
“The FATF may keep Pakistan on its gray list even after October for two reasons: Indian influence and the recent deadlock in the US-Taliban peace talks,” Muzamil Aslam, another senior economist, told Arab News.
He said the FATF had been “highly politicized” by India and the US to protect their vested interests, adding that “we should not expect a decision purely on our actions to fulfill its action plan.”
The FATF will formally announce its decision regarding Pakistan in Paris after a plenary that starts on October 13.
Pakistan delegation in Bangkok for final FATF review
Pakistan delegation in Bangkok for final FATF review
- Experts say the country’s team is well prepared to negotiate with the global financial watchdog
- The FATF will take its decision about Pakistan in October
Pakistan says responding to Afghan ‘offensive operations’ after border fire as tensions escalate
- Afghan Taliban spokesperson says “large-scale offensive operations” launched against Pakistani military bases
- Pakistan says Afghan forces opened “unprovoked” fire across multiple sectors along shared border
ISLAMABAD: Afghanistan’s Taliban authorities said on Thursday they had launched “large-scale offensive operations” against Pakistani military bases and installations, prompting Pakistan to say its forces were responding to what it described as unprovoked fire along the shared border.
The escalation follows Islamabad’s weekend airstrikes targeting what it said were Tehreek-e-Taliban Pakistan (TTP) and Daesh militant camps inside Afghanistan in response to a wave of recent bombings and attacks in Pakistan. Islamabad said the strikes killed over 100 militants, while Kabul said dozens of civilians were killed and condemned the attacks as a violation of its sovereignty.
In a post on social media platform X, Afghan government spokesperson Zabihullah Mujahid said Afghanistan had launched “large-scale offensive operations” in response to repeated violations by the Pakistani military.
Pakistan’s Ministry of Information said Afghan forces had initiated hostilities along multiple points of the frontier.
“Afghan Taliban regime unprovoked action along the Pakistan–Afghanistan border given an immediate, and effective response,” the ministry said in a statement.
The statement said Pakistani forces were targeting Taliban positions in the Chitral, Khyber, Mohmand, Kurram and Bajaur sectors, claiming heavy Afghan casualties and the destruction of multiple posts and equipment. It added that Pakistan would take all necessary measures to safeguard its territorial integrity and the security of its citizens.
Separately, security officials said Pakistani forces had carried out counterattacks in several border sectors.
“Pakistan’s security forces are giving a befitting reply to the unprovoked Afghan aggression with full force,” a security official said, declining to be named.
“The Pakistani security forces’ counter-attack destroyed Taliban’s hideouts and the Khawarij fled,” they added, referring to TTP militants.
The claims from both sides could not be independently verified.
Cross-border violence has intensified in recent weeks, with Pakistan blaming a surge in suicide bombings and militant attacks on militants it says are based in Afghanistan. Kabul denies providing safe havens to anti-Pakistan militant groups.
The clashes mark the third major escalation between the neighbors in less than a year. Similar Pakistani strikes last year triggered weeklong clashes before Qatar, Türkiye and other regional actors mediated a ceasefire in October.
The 2,600-kilometer (1,600-mile) frontier, a key trade and transit corridor linking Pakistan to landlocked Afghanistan and onward to Central Asia, has faced repeated closures amid tensions, disrupting commerce and humanitarian movement. Trade between the two nations has remained closed since October 2025.
