A recent report by the Financial Action Task Force has brought to light Pakistan's efforts to acquire missile equipment through deceptive means, shedding light on the country's shortcomings in preventing the financing of weapons of mass destruction. The report reveals that key components for ballistic missiles from China were mislabeled in documents, with the importer linked to Pakistan's National Development Complex, responsible for missile production.

India is expected to leverage this information to advocate for Pakistan's re-inclusion in the FATF 'grey list', which identifies countries with deficiencies in their anti-money laundering and terror financing systems. Pakistan has been on this list three times, with the most recent sanction lifted in 2022.

In February 2020, a Chinese vessel en route to Port Qasim in Karachi was intercepted at Gujarat's Kandla port. While the equipment was confiscated, the ship and crew were allowed to depart after an investigation.

The latest report by FATF, titled 'Complex Proliferation Financing and Sanctions Evasion Schemes', references the Indian Customs investigation. It confirms that the shipment's dual-use items were misdeclared as 'autoclaves', which are utilized for sensitive materials and missile motor applications. These items are subject to export control lists of the Missile Technology Control Regime and other jurisdictions. The seized cargo's Bill of Lading provided evidence of the importer's connection to the National Development Complex.

FATF is expected to publish the report soon, raising expectations in India that it will expose Pakistan's deficiencies in combating terror financing, potentially leading to enhanced monitoring and re-inclusion in the 'grey list'. This would subject Pakistan to heightened financial scrutiny, impacting foreign investments and capital inflows. India has been advocating for Pakistan's return to the list due to its support for terrorism and non-compliance with FATF regulations.