Global money laundering watchdog Financial Action Taken Force (FATF) may include Pakistan in its 'grey list' for failing to control terrorism financing.

The body is expected to make the announcement at its plenary meet in Paris at the end of this month, reported The Economic Times. In February, the body had decided to include Pakistan in the grey list by a consensus decision. A formal decision, however, is not announced yet.

Pakistan will have to submit an action plan to control terrorism funding and give a political undertaking if the country wants to escape being grey-listed. If the country fails to adopt a proper action plan, it may run the risk of being included in the 'Black-List' in future. Currently, Iran and North Korea are included in the black-list.

This motion was jointly moved by the United States, UK, France and Germany. During their meet in February, countries including India had put forth strong arguments against Pakistan’s efforts to control financing of terrorist groups. China and the Gulf Cooperation Council (GCC) had also agreed to put Pakistan in the grey list.

While Pakistan had taken action against Hafiz Saeed, the global watchdog felt that the move was not sufficient.

Pakistan requires the support of three FATF members to override the decision of grey-listing. As of now, it has garnered only Turkey's assistance. The global body has 35 members and two regional organisations — European Commission and GCC.

If grey-listed, Pakistan may suffer a risk of being downgraded by international lenders such as IMF, World Bank, ADB and EU.