Serious business.
From India's (Noida, Uttar Pradesh) Financial Express, May 2:
Pakistan was removed from FATF 'grey list' in October 2022 after four years of “increased monitoring.
In response to the recent terror attack in Pahalgam on April 22, India is considering a multi-pronged strategy to curtail Pakistan’s alleged terror financing networks, with key efforts focused on the Financial Action Task Force (FATF) and the International Monetary Fund (IMF), according to Indian Express.
According to senior government sources, India is weighing the option of seeking Pakistan’s return to the FATF ‘grey list’, a designation that increases scrutiny on financial transactions and foreign investments. Pakistan was removed from the list in October 2022 after four years of “increased monitoring.” Officials believe the period saw a decline in illicit fund flows into India, particularly into Jammu & Kashmir.
To initiate this process, India will need backing from other FATF member nations during the body’s plenary meetings, which occur in February, June, and October. India’s outreach has already seen diplomatic traction, with 23 FATF member countries—including the US, UK, France, Germany, and Saudi Arabia—sending condolence messages following the Pahalgam attack....
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The FATF move sets the stage and is of a part of India's objection to the IMF credit facility.
Pakistan really needs the money.
Also Financial Express, May 2:
....Why are IMF loans crucial for Pakistan?
Pakistan, which received a $7 billion bailout package from the IMF last year to stabilise its economy and avoid default, was also granted an additional $1.3 billion climate resilience loan in March. The aid is considered vital for the $350 billion economy as it grapples with structural reforms and high debt....
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