Pahalgam Terror Attack Renews Scrutiny on Pakistan’s Link to Terror Outfits:

The recent terrorist attack in the Pahalgam region of Jammu and Kashmir has once more fueled worries regarding the involvement of Pakistan in supporting terror outfits. Proxy terror group The Resistance Force has taken responsility for the attack which is reported to be conducted by a Lehar-e-Tayaba affiliate .

This terrorist group which came into existence after using Article 370, is said to have both lets and them’s of the Hizbul Mujahideen. This group was banned by India’s Home Ministry in 2023 citing reasons of cross border terrorism.

Pakistan Overstepping The Border While Denying Their Side While Leaving Any Shaddow Of Doubt

Overstepping the claimed border, Minister Khawaja Asif said that they had no business interfering with the other country’s issues claiming themade the clear statement namely stated that Pakistan had nothing to do with it. Counter terrorism experts suggest that the imbalanced relationship of India and Pakistan is a reason for intermilitary and convoys of freighters moving under the shadow of reason borders.

What Exactly Is The So Called Grey List And What Makes It So Interesting

A very interesting Change in the story comes where the nation has a weak defence policy guaranteeing prevention of uncontrolled spending of the nation’s budget while trying to control terrorism efforts disguised as High finance and other ATMs of terrorist attacks.

Pakistan was added to the FATF Grey List in June 2018 and was expected to comply with a 34-point action plan to enhance its anti-money laundering and counter-terrorism financing frameworks.

How Pakistan was delisted from the FATF Grey List

From 2018 to 2022, Pakistan did undertake legislative changes to meet FATF requirements. In September 2022, FATF conducted an onsite evaluation and subsequently lifted the grey status in October 2022, citing the fulfillment of Pakistan’s obligations.

Still, the body has mandated Pakistan to be monitored on sustained and demonstrable actions taken to mitigate the risk of relisting.

India's response to the delisting of Pakistan from the Grey List

India was appreciative of our country’s shift in focus towards Pakistan, while also encouraging the international community to keep the narrative on Pakistan’s sustained action on record. The Ministry of External Affairs underscored the need for Pakistan to continue taking tangible steps to curb terrorism and illicit financial activities emanating from its soil.

Where do we go from here?

The renewed accusations following the Pahalgam attack have led to speculation of a potential reconsideration of Pakistan’s position on the FATF Grey List. From the findings of the investigation, Pakistan stand to benefit or suffer ramifications concerning their status with the FATF depending on their perceived level of adherence to the group’s guidelines. There are three plenary sessions scheduled for the year, with the next one slated for June of 2025.

Entering a grey list can damage a nation’s economic condition by discouraging foreign direct investment while driving up the costs of borrowing. With the attack on Israel, Pakistan now is being subjected to greater attention and is required to more actively manage perception on how premiers respond to such geopolitical challenges.