Pakistan was officially placed on a terrorism financing watchdog's grey list on Wednesday, failing the country's efforts to avoid the designation, diplomatic sources claimed.

Global anti-terror financing watchdog, Financial Action Task Force (FATF) has decided to keep Pakistan on its 'grey list'.

The decision was taken during a plenary session going on in Paris.

Pakistan was officially placed on a terrorism financing watchdogs grey list on Wednesday, failing the country's efforts to avoid the designation, diplomatic sources claimed.

The report could not be confirmed independently and the FATF did not make an official announcement till late in the night.

The sources said that the Financial Action Task Force (FATF) took this decision during a plenary meeting in Paris, arguing that Pakistan had failed to act against terror financing and money laundering on its soil.

Earlier in the day, caretaker Finance Minister Shamshad Akhtar urged the FATF to remove Pakistan from its grey list.

Akhtar, who earlier reached Paris to attend the six-day FATF meeting from June 24-29, had requested the body to remove Pakistan from the 'grey list', as the FATF was to conduct a review.

In compliance with the FATF's recommendations, the Securities and Exchange Commission of Pakistan (SECP) issued the Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018 on June 20.

Earlier on June 8, the National Security Committee (NSC) reaffirmed its commitment on cooperating with FATF for achieving "shared objectives".

"The committee reaffirmed the commitment of the country to work with FATF and other international organisations in achieving common goals and shared objectives," a statement issued by the Pakistan Prime Minister Office (PMO) on the NSC meeting had said.

The FATF is an inter-governmental body established in 1989 to combat terrorist financing and money laundering. The decision to place Pakistan on the global money-laundering watchdogs grey list was made during its plenary meeting in February this year.

Earlier reports from Paris had indicated that Pakistan may get more time to take measures to implement the FATFs anti-money laundering and terrorist financing regulations.