Ahead of formal announcement by the Financial Action Task Force (FATF) on Islamabad’s effort against terror funding, the Chinese foreign ministry hinted that Pakistan will continue to remain on the watchdog's so-called grey list.

The Chinese foreign ministry has said that Pakistan has made enormous efforts to improve its counter-terror funding regime and it will continue to offer assistance to Pakistan in this regard.

The ministry also stated that Pakistan’s efforts have been recognised by the majority of FATF members at its latest plenary meeting in Paris.

“China & other countries will continue offering assistance to Pakistan in this area,” said the Foreign Ministry of China on Friday.

Pakistan has been placed on the “grey list” on FATF since June 2018. It was asked to comply with a 24-point plan of action by October 2019, and after complying with 14 points, FATF extended the deadline to October 2020.

Pakistan now has eight months’ time to secure an exit from the list or face the risk of being placed on the money laundering watchdog's black list along with Iran and North Korea.

Pakistan has been lobbying hard for the last few months and expects the country to be taken off the FATF grey list. 

But Islamabad has repeatedly been accused by India and some other FATF member states of not taking action against UN-designated terrorists. These member states have also said that Pakistan's anti-terror laws remain out of sync with globally accepted standards.

Once Islamabad exits from the grey list, it will be eligible for international financial aid from institutions like the International Monetary Fund, World Bank, Asian Development Bank, and the European Union.