India's recent efforts to have Pakistan placed back on the Financial Action Task Force (FATF) grey list have been unsuccessful, as the money laundering watchdog has decided to maintain the country's status under a 'reporting' mechanism rather than downgrading it, according to informed sources.

In 2018, Pakistan was added to the FATF's increased monitoring list, also known as the grey list, due to concerns about its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. However, after significant improvements and the completion of action items related to AML/CFT, the country was removed from the grey list in October 2022.

During the recent FATF meeting, the Indian delegation made efforts to push for Pakistan's reinsertion into the grey list. Nevertheless, China stood by Pakistan, advocating for leniency, while Turkey and Japan also showed their support.

Sources have revealed that the FATF chose to maintain Pakistan's status under a 'reporting' mechanism rather than downgrading it as India had hoped.

Despite India's attempts, with support from Israel, to use the FATF platform to exert pressure on Pakistan, member states dismissed these efforts as negative propaganda and acknowledged Islamabad's progress instead.

Following Operation Bunyamum Marsoos, Indian diplomatic missions intensified campaigns against Pakistan in various countries, but their narrative failed to gain international traction.

Meanwhile, Federal Finance Minister Muhammad Aurangzeb noted that India has once again experienced a diplomatic setback on the global stage. He also mentioned that the World Bank has approved a loan for the development of Pakistan's Reko Diq mining project.

The FATF serves as the global money laundering and terrorist financing watchdog, establishing international standards to prevent these illicit activities and their societal impact.