The Financial Action Task Force (FATF) – an inter-governmental body that combats money laundering, terrorist financing and threats to the international financial system – has decided to keep Pakistan on its grey list for another four months.

Pakistan was given until February 2020 to implement the FATF’s 27-point action plan.

During a meeting with the Pakistani delegation led by Minister for Economic Affairs Hammad Azhar, a compliance report was presented. FATF said that the country had made major progress on just five of the 27 action items, and varying levels of progress on the rest of the recommendations.

“While noting recent improvements, the FATF again expresses serious concerns with the overall lack of progress by Pakistan to address its terror financing concerns," the FATF report said.

Pakistan has failed to meet the January and May deadlines set by the FATF for implementing its action plan.

The FATF had put Pakistan on its grey list in June 2017 because of deficiencies in the country’s Anti-Money Laundering and Countering of Terrorist Financing regulations.

If Pakistan does not satisfy FATF by February 2020, Pakistan will be put in the "black list". This entails the imposition of sanctions, and is likely to lead to an economic crisis in the country.