Pakistan economy to be hit by FATF terror finance list: Top 10 developments

In perhaps one of the biggest impacts, a decline in foreign transactions and foreign currency inflows could lead to further widening of Pakistan's already large current account deficit

Amid its apparent failure to withdraw support and funding to proscribed terrorist organisations, Pakistan is set to be 'grey listed' by the Financial Action Task Force (FATF) in June.   

According to Pakistani media reports, this will mean that Pakistan's financial system will be designated as posing a risk to the international financial system over "strategic deficiencies" in its capability to curb financing of terrorist organisations and money laundering.   

Further, according to these reports, Islamabad will work with the global watchdog to build an action plan for plugging the deficiencies identified by the latter. In FATF's June session, Pakistan's