Abstract
Subject Pakistan's relationship with Laskhar-e-Taiba. Significance The intergovernmental Financial Action Task Force (FATF) at a plenary meeting last week decided to keep Pakistan on its ‘grey list’ of jurisdictions which have weak measures against terrorist financing, although it acknowledged the progress it has made in improving safeguards. As part of its attempts to come off the grey list, Pakistan has jailed Hafiz Saeed, leader of the Lashkar-e-Taiba (LeT) militant group. Pakistan’s politically powerful military has long leveraged LeT as a proxy. Impacts Some Pakistan-based militant groups may begin targeting the Pakistani state if deprived of outlets in Afghanistan and Kashmir. Islamabad is unlikely to be taken off the FATF grey list after the body’s next plenary meeting in June, but it may be later in the year. Pakistan will face immense external criticism if there are signs of the military tightening rather than loosening relations with militants.
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