Opinion | Cross-Border Terrorism and the Role of FATF: Why Pakistan Remains Under Global Watch

Opinion | Cross-Border Terrorism and the Role of FATF: Why Pakistan Remains Under Global Watch

The infrastructure—physical, financial, and ideological—that enables such groups to thrive must be dismantled completely. FATF, in particular, must go beyond checklists and reassess Pakistan’s sincerity in combating terrorism.

On April 22, 2025, the tranquil slopes of Baisaran in Pahalgam, a tourist haven in South Kashmir, were transformed into a site of bloodshed and horror. Gunmen opened fire on a group of tourists enjoying a spring afternoon in the verdant meadows. By the time the violence ceased, 26 innocent lives had been lost, and several others were left grievously wounded. Among the dead were children, women, and elderly tourists who had come seeking peace and natural beauty but instead encountered death at the hands of terrorists. The Resistance Front (TRF), a shadow affiliate of the Pakistan-based terror group Lashkar-e-Taiba, swiftly claimed responsibility for the massacre.

The attack sent shockwaves not only across India but also drew international condemnation. However, to many who have closely observed the trajectory of terrorism in South Asia, especially in Jammu and Kashmir, this was not surprising. It was a painful yet familiar chapter in the long saga of Pakistan’s continuing support to proxy terrorist groups. Despite repeated promises to the international community and obligations under global counter-terror frameworks, Pakistan has repeatedly failed—or refused—to eliminate the infrastructure that nourishes and exports terror across borders.

The recent Pahalgam attack underlines a broader, more sinister pattern. Even as Pakistan projects itself as a victim of terrorism and a partner in counter-terrorism efforts, it continues to provide safe haven, ideological support, and financial backing to groups that operate with impunity from its soil. The TRF, which emerged in 2019 as a front for Lashkar-e-Taiba to escape the scrutiny of the Financial Action Task Force (FATF), is a case in point. Though Pakistan claims that it has cracked down on Lashkar and similar groups, these terror outfits merely rebrand themselves under new names and continue to operate, recruit, and execute attacks.

Pakistan’s relationship with terror financing has long attracted global attention. In 2018, FATF placed the country on its grey list, citing “strategic deficiencies” in its ability to prevent financing of terrorist organisations like LeT, Jaish-e-Mohammad (JeM), and others. What followed was a flurry of legislative changes and cosmetic compliance. Islamabad hastily passed laws that criminalised terror financing and promised to regulate madrassas. It arrested a few known operatives, including Hafiz Saeed, the mastermind behind the 2008 Mumbai attacks, but only after sustained international pressure. Even these arrests have often been symbolic, with lenient jail terms or comfortable house arrests.

After being removed from the grey list in 2022, there was a cautious sense of optimism that Pakistan might finally take its commitments seriously. However, the events of April 2025 have cast serious doubts on that hope. The Baisaran attack was not an isolated incident. In recent months, there has been a surge in infiltration attempts across the Line of Control (LoC), targeted killings of civilians, and attacks on security forces. Intelligence agencies have confirmed that the weapons used in the Pahalgam massacre had markings consistent with arms supplied by Pakistani handlers. The attack bore the classic hallmarks of Pakistani-sponsored operations: well-planned, brutal, and strategically aimed at destabilising peace in Jammu and Kashmir just as the region was witnessing a revival of tourism and public confidence.

Our Indian government has responded with seriousness. Visa facilities for Pakistani nationals have been suspended, and diplomatic channels are being used to push for international condemnation. More importantly, India has called upon the FATF and United Nations Security Council to reassess Pakistan’s compliance record in light of the attack. If FATF is to remain a credible global watchdog, it cannot ignore Pakistan’s duplicity. Listing and delisting countries based on paperwork and legal jargon without looking at real-world consequences of terror financing risks rendering the entire process hollow.

It is also important to understand why Pakistan continues to nurture these terror groups. For decades, its military-intelligence establishment has used jihadi proxies as tools of foreign policy—first in Afghanistan, then in Kashmir. The deep state in Pakistan sees these groups as strategic assets, providing deniability while pursuing its geopolitical goals. By exporting instability, Pakistan aims to keep Kashmir on the boil, internationalise the issue, and deflect attention from its internal crises. But this strategy has backfired spectacularly. Not only has Pakistan isolated itself globally, but it is also reeling under economic hardship and political instability—much of it exacerbated by its refusal to break free from the terrorism trap.

The attack on innocent tourists is especially heinous because it targets symbols of peace, unity, and progress. Tourism in Jammu and Kashmir is a bridge between cultures and a testament to the valley’s resilience. In recent years, as militancy receded, the region witnessed a surge in tourist arrivals. Hotels were full, local businesses flourished, and global interest in Kashmir as a peaceful destination grew. The Pahalgam massacre is a desperate attempt to reverse that trend—to spread fear, send a political message, and provoke communal tensions. But it must not succeed. The best tribute to the victims is to stand united and ensure that such forces do not triumph.

Pakistan must be held accountable not just by India but by the world. Countries that continue to trade, aid, or engage with Islamabad must ask tough questions. It is no longer enough for Pakistan to merely arrest a few operatives or ban an organisation on paper. The infrastructure—physical, financial, and ideological—that enables such groups to thrive must be dismantled completely. FATF, in particular, must go beyond checklists and reassess Pakistan’s sincerity in combating terrorism. If a country that claims to be in compliance with global norms can still allow such attacks to be planned and executed from its soil, then there is something fundamentally broken in the system of international oversight.

The people of Kashmir have endured immense suffering over decades. They deserve peace, progress, and prosperity—not more bloodshed fuelled by foreign actors. The world must recognise this and act. Empty statements and symbolic sanctions are not enough. Accountability must be real, sustained, and uncompromising. The Pahalgam tragedy must become a turning point, not another forgotten footnote.

Syed Jahanzeeb is a political analyst and columnist based in Srinagar. He writes extensively on South Asian geopolitics, terrorism, and regional stability. His work appears regularly in national and international media outlets. Email: syedjahanzeeb2@gmail.com