Pakistan’s Terror Ecosystem: Funding Networks and Operational Structure:

Suspense crime, Digital Desk : Within the boundaries of Pakistan lies a multitude of terrorist outfits. The terrorism such groups inflict upon the world is a chain reaction that they are not new to. Despite the attempts of many countries on a global platform to curb their funding, most of these organizations still manage to operate through an enduring and covert financial system.

Categories of Terrorist Organizations in Pakistan

Pakistan-Based Terrorist Organizations may be grouped into five subclasses:

Groups with global ambitions

Groups concentrating on Afghanistan

Groups concentrating on India

Groups focusing internally

Anti-Shia Sects

Included in the list of India-centric groups are:

Lashkar-e-Taiba (LeT) – Active since late 1980s

Jaish-e-Mohammed (JeM) – Established in 2000

Harakat-ul Jihad Islami (HuJI) – Active since 1980

Harakat ul-Mujahidin (HuM) – Established in 1998

Hizbul Mujahideen (HM) – Active since 1989

The Pakistan Army's Role in Funding Terrorism

The report “Pakistan Army and Terrorism: An Unholy Alliance” published by European Foundation for South Asian Studies (EFSAS) suggests that these factions are directly funded by the Inter-Services Intelligence (ISI) of Pakistan. It has been estimated that the ISI funds between 125 and 250 million dollars a year to these groups, ranging from day-to-day expenditures to bounties and spies.

Sources of Terror Funding

An internal Pakistani government report, National Risk Assessment on Money Laundering and Terrorism Financing 2017, unveiled the primary funding mechanisms for these organizations:

- Foreign donations
- Drug trafficking
- Kidnaping for ransom
- Extortion and Smuggling
- Vehicle theft

Noor Zahid and Madeeha Anwar Voice of America reported these details, quoting a conversational document from the government.

The document suggests that approximately more than 200 international and local terrorist outfits operating in the country have funds available between 5 million to 25 million Pakistani Rupees (roughly 48 thousand to 240 thousand US dollars).

Use of High Denomination Currency

The Jamestown Foundation's Terrorism Monitor noted that the preferred method of payment for terrorists within Pakistan is cash, which is most certainly not digital. They emphasize the prevalence of large denomination notes like the 5000 rupee bill to camouflage the trackable flow of resources.

Pakistan is home to 7.1% of the unbanked adults in the world while only having 3% of the world population. This rampant cash-based economy affects the economy.

Islamic Charities as Terror Fronts

Terror groups systematically operate Islamic charities which work as funding fronts. Many of these groups according to a report by Middle East Forum, have received donations from overseas making them inadvertently funded by foreign aid bodies such as USAID.

Much of the funding is also supported by Pakistan’s government controlled zakat fund collection system. In 2024, Pakistan collected more than 600 billion PKR in zakat, with a large amount allegedly used to support terrorist activities.

Ongoing World Issues

As stated in a 2023 research brief of the United States Congressional Research Service Pakistan’s National Action Plan of 2014 sought to curb some of the militant activity. Regardless, numerous UN and US sanctioned terrorist factions continue to operate without restrictions from the international community.