Islamabad, July 31, 2025: India has formally approached the Financial Action Task Force (FATF), seeking Pakistan’s return to the watchdog’s grey list, citing recent controversial remarks made by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, FATF officials confirmed on Thursday.
According to officials within the global financial watchdog, New Delhi submitted a dossier referencing Gandapur’s public statement in which he said:
“We arrest the Taliban, but our own institutions get them released, claiming they are their people.”
Indian authorities have argued that this statement constitutes a public admission of institutional support for terrorist elements within Pakistan, and have labeled it a key piece of evidence pointing to Islamabad’s alleged failure to combat terrorist financing.
FATF sources revealed that India has framed Gandapur’s remarks as a formal “charge sheet” against Pakistan, particularly drawing attention to the situation in Khyber Pakhtunkhwa, a region frequently affected by terrorism and militancy.
The development comes nearly three years after Pakistan was removed from the FATF grey list in 2022, following extensive reforms in its anti-money laundering and counterterrorism financing frameworks. The removal had significantly improved Pakistan’s standing among international financial institutions and lenders — a critical boost for its struggling economy.
Re-inclusion in the grey list could have serious implications, including stricter financial scrutiny, potential delays in funding from global lenders, and reduced investor confidence.
The FATF grey list, officially termed the “increased monitoring list,” is used to designate countries with strategic deficiencies in preventing money laundering and terrorist financing. Countries on the list are required to work with FATF to address these shortcomings through an agreed action plan.
Gandapur’s statement has already sparked domestic backlash, with critics accusing him of carelessness at a time when Pakistan is striving to maintain international credibility on counterterrorism efforts.
FATF has not yet made any formal decision regarding India’s request. However, analysts warn that the move could strain Pakistan’s diplomatic relations and place its financial reputation at renewed risk.
