Taking note of the fact that Pakistan has improved its full compliance on only two of the 40 FATF recommendations to curb terror financing and money laundering, a regional affiliate of the financial watchdog has retained the country on its ‘Enhanced Follow-up’ list, according to Pakistani media reports. The APG report noted that Pakistan’s measures against money laundering and terror financing ‘is not yet sufficient to justify a re-rating’. FATF had placed Pakistan on its grey list in June 2018 and asked Islamabad to implement a plan of action by the end of 2019 but the deadline was extended later on due to the Covid-19 pandemic.