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Pakistan is back on anti-terrorism financial watchlist

Pakistan's foreign minister
Pakistan's Foreign Minister Khawaja Muhammad Asif. Photo: Mikhail Tereshchenko / TASS via Getty Images

After days of speculation, the Financial Action Task Force (FATF), which tracks countries suspected of engaging in terrorist financing and money laundering, added Pakistan to its terrorist financing watch list.

Why it matters: Adding Pakistan to the list is a more effective way of urging the state to change its policy of sponsoring terrorist groups than cutting off aid immediately. And Pakistan has until June to improve on its anti–money laundering activities.