Pak could face economic pain from return to terrorist financing 'grey list'

The move is part of broader US strategy to pressure Pakistan to cut its alleged links to Islamist militants waging chaos in Afghanistan

The prospect of Pakistan being placed back on a global terrorist financing watchlist could endanger its handful of remaining banking links to the outside world, causing real financial pain to the economy just as a general election looms.

Washington and its European allies have co-sponsored a motion calling for the nuclear-armed nation to be placed on a "grey list" of countries deemed to be doing too little to comply with anti-terrorist financing and anti-money laundering regulations, with a decision expected next week when member states of the Financial Action Task Force (FATF) meet in Paris.

The move is part of a broader