New Delhi: In yet another setback for Imran Khan-led Pakistan government on international podium, the terror financing watchdog Financial Action Task Force (FATF) has decided to retain the country on its 'Grey List' and has handed over an 8-point list which Islamabad will have to deliver in the next four months. According to reports, Pakistan has been given four months to fulfil requirements of FATF in order to secure an exit from its Grey List.

The decision was taken by the anti-money laundering watchdog after the conclusion of the February 16-21 group meetings and plenary in Paris. The FATF, in October 2019, decided to keep Pakistan on its Grey List for failure to curb funnelling of funds to terror groups Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM) and others.

If not removed off the list by April, Pakistan may move to a blacklist of countries that face severe economic sanctions, such as Iran. According to a report in the Dawn newspaper, the international terror financing watchdog was set to give Pakistan time till June 2020 to achieve full compliance with its 27-point action plan and secure exit from the FATF Grey List.

ALSO READ | Samjhauta Express Blast Victims Waiting For Justice: Pakistan Reminds India To Take Action

News agency PTI quoted sources from Paris said that Pakistan was found fully or close to fully compliant on more than half of the 27 targets. We are satisfied with the progress so far. There was no case at all for blacklisting us, a Pakistani source was quoted by the agency as saying in the report.

Pakistan is already finalising major amendments to at least a dozen of its laws to meet the FATF requirements by June this year and sentenced Mumbai attack mastermind and JuD chief Hafiz Saeed to 11 years in two cases of terror financing on February 12.

ALSO WATCH | Coronavirus Update: Pakistani Families Hold Marches Against Govt's Inaction



Saeed, a UN designated terrorist whom the US has placed a USD 10 million bounty on, was arrested on July 17 in the terror financing cases. The 70-year-old fiery cleric is lodged at the high-security Kot Lakhpat jail in Islamabad. Based on these steps, the country's performance would be judged in the next FATF plenary in October 2020, the report said.

Pakistan had submitted a 650-page review report to the FATF on January 8. The report was submitted in response to 150 questions raised by the FATF regarding new Pakistani policies on money laundering. The report outlined the steps taken by Pakistan between October 2019 to January 2020 to implement the group's recommendations.

In January, Pakistan urged the US to support its bid to exit from FATF's grey list ahead of a key meeting of the international terror financing watchdog in Beijing in which Islamabad's efforts to adopt stricter laws against terror financing and money laundering were scrutinised.

(With inputs from PTI)