A global money-laundering watchdog has urged Pakistan to "continue to make progress" on the one remaining recommendation that still prevents the country from being removed from a so-called gray list of terrorism financing.
The Paris-based Financial Action Task Force (FATF) said in a statement on June 25 at the end of its plenary session that Pakistan had made progress on 26 out of 27 recommendations made by the watchdog to prevent terrorism financing and money laundering.
The final recommendation, or "action item," refers to "the investigation and prosecution of senior leaders and commanders of the UN-designated terror groups,” FATF chief Marcus Pleyer told a press conference after the end of the five-day plenary.
"Pakistan has made significant progress and it has largely addressed most measures," Pleyer said.
FATF placed Pakistan on the list in 2018 for having inadequate controls on money laundering and terrorism financing.
The listing has hurt trade and foreign investment in the country.
Pakistan was placed on the watchlist on the request of the United States and its European allies to compel the country to do more to combat Islamist militancy.
FATF has noted that since 2018 Pakistan has shown a “high-level political commitment” to address terror financing.
Pakistan’s powerful military has often been accused of harboring Islamist militants to use them as proxies against India and neighboring Afghanistan.