Islamabad, June 28: Global anti-terror financing watchdog Financial Action Task Force (FATF) has placed Pakistan on the ‘grey list’ for failing to curb financing of terror funds, officials said on Thursday. Despite Islamabad’s diplomatic effort in submitting a 26-point action plan spanning over a period of 15 months, Pakistan was placed on the ‘grey list’ at the 37-nation FATF plenary session in Paris late on Wednesday night.Also Read - Pak PM Imran Khan Bats for Taliban, Says Incentivise Them on Women's Rights, Inclusive Govt

The comprehensive 26-point action plan was submitted to the FATF to choke the funding of militants groups, including Mumbai attacks mastermind Hafiz Saeed-led JuD and its affiliates. Finance minister Shamshad Akhtar who represented the country in the plenary session apprised the FATF to revoke their decision as Islamabad has been actively involved in weeding out money laundering and terror financing. Pakistan’s name in the ‘grey list’ will have adverse implications on its international position as well as on its economy. Also Read - Don't Need Lessons From 'Failed State': India Hits Out at Pak, OIC For Raising Kashmir Issue at UNHRC

Also Read - Afghanistan Women Football Team Escapes Taliban, Reaches Pakistan: Confirms Information Minister

Official sources in the Foreign Office said, “It is a political decision and has nothing to do with the performance of Pakistan against terrorism.” From 2012 to 2015, Pakistan’s name appeared on the FATF ‘grey list’. So the officials were hopeful that the country will stay out of the list after a year or so.

Established in 1989, the inter-governmental body, FATF strives to eliminate threats to the integrity of the international financial system. In February 2018 FATF nominated Pakistan for the ‘grey list’ which falls under the International Cooperation Review Group (ICRG). Therefore, the 26-point plan of action was prepared to address the concerns of the international body since the country was under the risk of being blacklisted.

On June 8, Pakistan’s commitment to cooperate with the FATF was reinstated by the National Security Committee (NSC). Pakistan is expected to publish by January 2019, an updated list of persons and entities charged under the Anti-Terrorism Act and the UN-designated entities.

(With inputs from PTI)