Disclosures under the US Foreign Agents Registration Act (FARA) have exposed Pakistan's strategic use of Washington-based lobbying firms to secure American support against potential re-listing on the Financial Action Task Force (FATF) grey list.

These revelations come amid heightened international scrutiny of Islamabad's record on terror financing, particularly following the deadly Pahalgam terror attack in April 2025. Pakistan, which exited the grey list in October 2022 after years of monitoring, now faces renewed pressure at an upcoming FATF plenary expected next month.

The FATF grey list subjects nations to enhanced scrutiny for deficiencies in combating money laundering and terrorist financing, imposing barriers to international loans, investments, and banking transactions.

Pakistan's history with the list is chequered: it was first added in 2008, removed in 2015, re-added in 2018, and exited only after addressing action plans in 2022. Critics argue that despite these exits, core institutional failures persist, allowing illicit flows linked to terrorism to continue unabated.

A key FARA filing highlights Javelin Advisors LLC, registered in April 2025 to represent Pakistan under a consulting agreement dated 24 April—just two days after the Pahalgam attack that killed 26 civilians, mostly Hindu tourists, near the scenic town in Jammu and Kashmir.

The firm committed to communicating Islamabad's positions on regional issues, including the Jammu and Kashmir dispute and Pakistan-India relations, to the US executive branch, Congress, and public. This timing suggests a rapid escalation in diplomatic efforts post-attack, amid India's accusations of Pakistani involvement via proxies like The Resistance Front (TRF), an offshoot of Lashkar-e-Taiba.

Another disclosure reveals the Embassy of Pakistan in Washington contracted Ervin Graves Strategy Group LLC, effective 1 October 2025, for intensive lobbying to avert FATF grey-listing. The firm focused on assuring US stakeholders of Pakistan's compliance progress since 2022, emphasising political commitment and readiness for bilateral information exchanges on residual FATF items. 

Documents indicate Islamabad sought "procedural fairness" and credited past US support, expressing confidence in Washington's backing for the June 2025 plenary—though scrutiny has intensified into 2026.

The Pahalgam attack, claimed initially by TRF before a retraction, prompted India's Operation Sindoor in May 2025 and NIA charges in December against Pakistan-based groups and individuals, tracing the plot to ISI directives.

Fifteen locals allegedly facilitated the militants, who targeted tourists indiscriminately, killing a Christian visitor and a Muslim operator too. This incident has bolstered calls, led by New Delhi, to reimpose FATF measures, with evidence of non-prosecution of UN-designated terrorists and stalled reforms.

Counter-terrorism experts contend that Pakistan's lobbying masks deeper shortcomings, as Islamabad has repeatedly misled global bodies without enacting lasting institutional changes against terror financing.

Despite claims of "significant progress" post-2022, failures in pursuing senior UN-listed terror leaders persist, a key unmet FATF criterion. The grey list's economic sting—evident in Pakistan's prior stints totalling over 3,500 days—underscores the high stakes, as relapse could cripple its fragile economy reliant on aid.

India plans to leverage the next FATF plenary to highlight Pakistan's slippage, opposing World Bank funding and pushing for grey-listing based on post-Pahalgam evidence.

US policymakers, lobbied heavily by Pakistani agents, face a dilemma: supporting Islamabad risks alienating New Delhi amid rising Indo-Pacific tensions. FARA mandates such disclosures for transparency, yet Pakistan's campaigns reveal a pattern of external influence to evade accountability on terrorism's financial lifelines.

As the FATF evaluates Pakistan, the world watches whether lobbying triumphs over evidence of ongoing terror support. Islamabad's assurances of reform ring hollow against its track record, where grey-list removals have not curbed proxy warfare financing. With global pressure mounting, failure to act decisively could invite blacklist escalation, further isolating Pakistan economically and diplomatically.

Based On Business Today Report