Islamabad (Pakistan) | Jagran News Desk: In a big setback for Pakistan Prime Minister Imran Khan, the Financial Action Task Force (FATF) on Friday announced that Islamabad will continue to remain in its 'Grey List' due to its failure to take necessary actions against Hafiz Saeed, Masood Azhar and Zakiur Rehman Lakhvi.

In a statement, FATF president Marcus Pleyer said that Pakistan has largely addressed 26 out of 27 measures but noted that it has failed to check the risk of "money laundering, leading to corruption and terror financing".

"The FATF encourages Pakistan to continue to make progress to address as soon as possible the one remaining Combating the Financing of Terrorism (CFT)-related item by demonstrating that Terror Financing (TF) investigations and prosecutions target senior leaders and commanders of UN-designated terrorist groups," the statement read.

How FATF's decision to keep Pakistan in 'Grey List' will impact Islamabad and its economic crisis?

The FATF's decision will make it more difficult for the Imran Khan government to get financial aid from the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB) and the European Union (EU). This will further create an economic crisis for Pakistan which is already struggling to control its financial position.

Tabadlab, an Islamabad-based think tank, in its research paper titled "Bearing the cost of global politics -- the impact of FATF grey-listing on Pakistan's economy" has claimed that FATF's decision has led to a loss of USD 38 billion for Pakistan so far.

Experts suggest that this loss will likely increase if Pakistan continues to be in the 'Grey List' of FATF, the global watchdog that was established in 1989 to combat money laundering and terror financing.

Pakistan, which was placed on the Grey List by the FATF in 2018, currently needs 12 votes out of 39 to exit it and move to the 'White List'.

Posted By: Aalok Sensharma