India will push the Financial Action Task Force (FATF), a global financial crime watchdog, to add arch-rival Pakistan to its “grey list”, Reuters reported on Friday citing a top government source in New Delhi.
India will also oppose upcoming World Bank funding for Pakistan, amid renewed tensions between the two nuclear-armed neighbors, the government source said.
Pakistan was taken off the FATF grey list in 2022, boosting its reputation among lenders – which is essential for the crisis-hit economy.
Pakistan was added to the grey-list in 2018 and then given an action plan to address strategic counter-terrorist financing-related deficiencies by passing legislation and restructuring coordination between law enforcement and financial institutions.
In response to the recent terrorist attack in Pahalgam, India has initiated a series of significant diplomatic and strategic actions targeting Pakistan.
India has decided to downgrade diplomatic ties with Pakistan, including the expulsion of all Pakistani military advisors stationed at its High Commission in New Delhi. Moreover, key border crossings are to be closed, effectively halting movement and trade through critical points.
One of the most consequential steps includes the suspension of the Indus Waters Treaty, a long-standing water-sharing agreement between the two countries. India has also ordered the withdrawal of its diplomatic personnel from the Indian High Commission in Islamabad.
