Financial Action Task Force (FATF) may put Pakistan under its "Dark Grey List", which is the international terror financing watchdog's last warning, according to reports.
Officials who are part of the ongoing FATF review suggested that if Pakistan continues to not improve its efforts against terrorism, the country will be isolated by all members, reported news agency PTI.
The international body has warned Islamabad of its poor performance in tackling terror. In FATF's latest monitoring review, the country managed to pass only six out of 27 parameters on acting against terror financing and money laundering. The final decision on Pakistan will be announced on October 18.
Known to be the "last warning", the dark grey list as the term suggests is the final caution before a country is officially blacklisted.
What is FATF?
Founded in 1989, the FATF is an inter-governmental organisation works against money laundering, terror funding and other illicit financial systems by monitoring finance and law agencies.
Pakistan was placed under FATF's 'grey list' last year and was given until October 2019 to control its terror financing issues. Failing to adhere to the warnings, Pakistan risks being placed on the blacklist with Iran and North Korea.
India has repeatedly slammed Pakistan for sponsoring terror and pushing militants in India, threatening national security.
Speaking at a recent conference of Anti-Terrorism Squad and Special Cells in New Delhi, National Security Advisor Ajit Doval said "If a criminal has the support of a state, it becomes a great challenge. Some of the states have mastered this, in our case Pakistan has made it as an instrument of its state policy,"
If Pakistan is blacklisted by FATF, it also risks getting cut-off from the International Monetary Fund (IMF), World Bank and European Union, making its cash-strapped financial condition more difficult.