Trouble ahead for Islamabad?: Ex-diplomat warns Pakistan could be put back on FATF list

Former Pakistani ambassador Husain Haqqani has warned that Pakistan risks being placed back on the Financial Action Task Force (FATF) grey list if the global community observes renewed activity by jihadi groups.

"Pakistan was put on FATF Grey List in 2008 & removed from it in 2015, only to be put back on that list again in 2018 & taken off in 2022. It could be put back on the list if the international community notices reactivation of Jihadi groups," Haqqani wrote on X.

His warning comes just days after the United States designated The Resistance Front (TRF) as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT), identifying it as a front for the Lashkar-e-Tayyiba (LeT).

"Today, the Department of State is adding The Resistance Front (TRF) as a designated Foreign Terrorist Organization (FTO) and Specially Designated Global Terrorist (SDGT)," read the statement issued on July 17.

The US State Department added, "TRF, a Lashkar-e-Tayyiba (LeT) front and proxy, claimed responsibility for the April 22, 2025, Pahalgam attack which killed 26 civilians. This was the deadliest attack on civilians in India since the 2008 Mumbai attacks conducted by LeT. TRF has also claimed responsibility for several attacks against Indian security forces, including most recently in 2024."

The department further said these actions "demonstrate the Trump Administration's commitment to protecting our national security interests, countering terrorism, and enforcing President Trump’s call for justice for the Pahalgam attack." TRF and its aliases have now been added under LeT's FTO and SDGT designations.

The US decision has drawn renewed scrutiny of Pakistan's record in containing terror proxies operating from its territory.

Pakistan was first placed on the FATF grey list in 2008 and remained there until 2015. It was re-listed in 2018 and stayed under monitoring until it was removed in October 2022 after reportedly addressing most of the action points.

Being placed on the grey list subjects a country to increased monitoring and financial scrutiny, raising barriers for international loans, investment, and banking transactions. FATF urges nations on the list to take concrete steps to curb money laundering and terror financing, failing which they may face further restrictions.