Pakistan appears to be making a renewed effort to demonstrate that it is taking action against terrorism and terror financing ahead of the Financial Action Task Force (FATF) plenary in October. In a move that is already drawing scrutiny, Pakistan’s Federal Investigation Agency (FIA) on Monday released its 2026 list of most-wanted terrorists, with Jaish-e-Mohammed (JeM) chief Masood Azhar featuring in the agency’s Red Book. The FIA has also increased the bounty on Azhar by PKR 20 lakh, taking the total reward to PKR 70 lakh. Quick answers to key questions
The increased bounty on Masood Azhar aims to demonstrate Pakistan’s commitment to combating terrorism and terror financing ahead of the FATF plenary, which is crucial for preventing Pakistan from returning to the FATF grey list. Pakistan has previously taken similar actions to reassure FATF member countries of its efforts against terrorism, which is often seen as a strategy to mitigate international scrutiny and pressure. The FATF evaluates Pakistan’s compliance based on the substance of its actions, including enforcement efforts against terrorism, rather than just symbolic gestures like increasing bounties.
India may use an adverse FATF assessment of Pakistan, such as being placed on the grey list, as leverage in diplomatic negotiations related to cross-border terrorism. Experts suggest that while the bounty reflects an attempt to show action, its effectiveness will depend on the FATF’s perception of whether Pakistan’s actions are genuine or merely symbolic. The timing of the announcement is significant. With the FATF plenary due in October, Islamabad is under pressure to show that its actions against terrorism and terror financing are credible and enforceable. ‘Not the first time’ Suresh K Goel, a former IFS officer, said Pakistan has taken similar steps in the past to demonstrate compliance and reassure international partners. “I think this is not the first time Pakistan has taken such an action. We have seen Pakistan do this before, essentially to convince or reassure other member countries that it is taking action wherever required,” Goel said.
He said the significance of the latest move would depend on how FATF members assess it. “Ultimately, however, it will depend on how seriously the member countries assess this move and whether they believe Pakistan’s actions are substantive or merely symbolic.”
‘Countries within the FATF also have close ties with Pak’ Goel also pointed to the influence of countries within the FATF framework that maintain close ties with Pakistan. “There are clearly countries within the FATF framework that are highly influential and also have close ties with Pakistan. So, the real question is whether these countries will accept Pakistan’s latest move at face value, or whether they will demand concrete and verifiable action against terrorism and terror financing.”
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Why the October FATF plenary matters The timing is particularly important given Pakistan’s history with the FATF grey list. Islamabad was removed from the FATF’s increased-monitoring process in October 2022 after completing the action plans prescribed by the watchdog.
A return to increased monitoring could have significant economic and reputational consequences for Pakistan, particularly given its continuing economic vulnerabilities. Goel said the latest announcement alone is unlikely to determine the FATF’s assessment. “We will have to wait and see how it unfolds. A decision from the FATF will not depend entirely on this announcement by Pakistan,” Goel said. The international community is ultimately likely to judge Pakistan on whether its actions result in measurable, sustained and verifiable enforcement rather than announcements alone. A smokescreen to avoid the grey list?
Masood Azhar’s case is particularly sensitive for India. The JeM chief is a United Nations Security Council-designated terrorist and has long been associated with the Pakistan-based terror organisation.
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He has been linked to several major attacks against India, including the 2001 Parliament attack, the 2016 Pathankot attack and the 2019 Pulwama attack. JeM was also involved in the 1999 Kandahar hijacking, after which Azhar was released in exchange for the hostages. Following the Pahalgam terror attack, in which 26 people were killed, India launched Operation Sindoor. It struck multiple terror targets across Pakistan and Pakistan-occupied Kashmir, including facilities linked to JeM in Bahawalpur. Against this backdrop, Azhar’s inclusion in Pakistan’s latest most-wanted list is likely to draw attention in New Delhi. How does it matter to India? India is unlikely to judge the announcement solely on the basis of the increased bounty.
Goel said the move would not fundamentally alter the assessment of Pakistan’s actions. “This particular move will have no real meaning for anyone trying to understand the situation. A decision on this issue does not depend on moves like this, but on how FATF member countries assess overall developments.”
For New Delhi, the key question is whether Pakistan takes sustained action against terrorist groups operating from its territory. Goel said India would be closely watching developments and could use an adverse FATF assessment as diplomatic leverage against Pakistan.
“India is watching this move with great interest. If FATF places Pakistan on either the grey or black list, it yields significant leverage for India. Depending on FATF’s final decision, India will determine its next diplomatic steps.”
He said diplomatic pressure alone may not be enough unless Pakistan perceives a tangible cost for supporting or allowing cross-border terrorism.
“Diplomatic moves will put some kind of pressure on Pakistan. But unless Pakistan realises that there is a cost to its policies promoting cross-border terrorism, it is not going to stop.”
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Goel emphasised that “Pakistan has historically viewed cross-border terrorism as a relatively low-cost means of inflicting damage on India”. “Therefore, there has to be a cost to what it does. But if Pakistan is able to cosy up to the USA despite all that it has done, and be seen as a mediator on the ground, I don’t think it is going to work. Therefore, it’s a very complex situation.”
The wider terror network The FIA’s updated roster also lists 11 Lashkar-e-Taiba (LeT) terrorists accused of facilitating the sea voyage of the attackers aboard the boats Al-Hussaini and Al-Fauz.
The names include Muhammad Amjad Khan of Multan, Shahid Gafoor of Bahawalpur, Mohammad Usman of Sahiwal, Ateeq-ur-Rehman of Lahore, Riaz Ahmad of Hafizabad, Muhammad Mushtaq of Gujranwala, Muhammad Naeem of Dera Ghazi Khan, Abdul Shakoor of Karachi, Muhammad Sabir Salfi of Multan, Muhammad Usman of Lodhran and Shakeel Ahmed of Rahim Yar Khan.
