Pakistan Under Scrutiny Again as FATF Raises Concerns Over Missile Development

FATF Flags Pakistan’s Missile Activity, Terror Links; India Set to Push for Grey Listing.

The Financial Action Task Force (FATF) has raised fresh concerns over Pakistan’s involvement in ballistic missile development and its continued support for terror financing networks. In its latest report on “Complex Proliferation Financing and Sanctions Evasion Schemes,” the global watchdog cited a 2020 incident in which Indian customs intercepted a shipment of dual-use goods headed for Pakistan.

The seized cargo, mis-declared as “autoclaves,” was determined to be equipment used in the production of ballistic missile motors. According to the report, the shipment was directly linked to Pakistan’s National Development Complex — a key agency involved in missile development. The goods fall under international export controls, including those of the Missile Technology Control Regime (MTCR).

FATF Condemns Pahalgam Terror Attack
The report also comes on the heels of FATF’s rare public condemnation of the April 22 terrorist attack in Jammu and Kashmir’s Pahalgam, which killed 26 tourists. The agency said such attacks are not possible without access to financial networks and illicit funding.

“This and other recent attacks could not occur without the money and the means to move funds between terrorist supporters,” FATF stated.

India Ramps Up Diplomatic Pressure
India is now expected to intensify its push to have Pakistan re-listed on FATF’s grey list, citing the latest disclosures as further proof of Islamabad’s failure to curb terror financing and proliferation activities.

According to sources cited by Moneycontrol, Indian officials have shared intelligence with key FATF member countries and are building consensus ahead of the Asia Pacific Group meeting in August and the FATF plenary in October.

If successful, this would mark the fourth time Pakistan is placed under enhanced monitoring by the FATF — a move that could impact its international financial credibility and economic standing.