The Financial Action Task Force (FATF), in its latest report, blamed Pakistan for violating international rules in ballistic missile development. Citing a shipment seized by Indian Customs officials in 2020, FATF said that double -used goods related to Pakistan’s National Development Complex (NDC) were declared incorrectly in export documents. After this revelation, India can pressurize the Asia Pacific Group meeting to be held in August and the full session of FATF in October to put Pakistan in the gray list again.
FATF reports mentioned in the ‘Complex Proliferation Finance and Sankhson Schemes’ that India seized an Asian flag ship in 2020, which was going to Port Qasim in Pakistan. Investigations found that the goods declared as ‘autoclaves’ in shipment were actually a tool used in high-energy materials and chemical coating for missile motors. This goods are included in the list of double use of missile technology control regime (MTCR).
The time of this report is important, as FATF has recently increased its surveillance on state -sponsored terrorism in Pakistan. FATF strongly condemned the terrorist attack on 22 April 2025 in Pahalgam in Jammu and Kashmir, in which 26 tourists died. FATF said, “Such attacks are not possible without fund transfer between money and terrorist supporters.” India blamed Pakistan’s terrorist network and government support for this attack.
India had questioned Pakistan’s terrorist network in FATF full session held in Strasbourg, France last week. According to PTI sources, India is sharing intelligence in Global Network in more than 200 countries of FATF to raise support to re -include Pakistan in the gray list. The inclusion of the gray list may lead to a decrease in foreign investment, increase in borrowing costs and strict monitoring of global lenders.
Pakistan has already been in the Gray list of FATF by 2008-2010, 2012-2015 and 2018-2022. This time India’s pressure may be stronger based on the previous Pahalgam attack and evidence of missile development.
