A US State Department report reveals that Pakistan has made significant strides in addressing terrorist financing and regional extremist networks, though it also faces severe security challenges, including a sharp rise in terrorist attacks in 2023
The report, released this week, praises Pakistan for completing an updated National Risk Assessment (NRA) on money laundering and terrorism financing in 2023. This assessment covered 87 terrorist groups, analyzed sector vulnerabilities, and identified donations and extortion as primary funding sources for terrorism.
The report states that 41 active groups in Pakistan continue to rely on cash couriers and illicit money transfer services. Porous borders with Afghanistan are highlighted as a major weakness enabling illegal financial activities.
The US assessment notes Pakistan’s commitment to UN resolutions, including prosecuting citizens who fought in foreign conflicts. In 2023, about 100 Pakistani nationals were in northeastern Syria, and Pakistan has declined to repatriate them.
Pakistan’s efforts to share the findings of the NRA with law enforcement and stakeholders, directing them to implement targeted policies, were also acknowledged. Furthermore, the US report notes the extradition of a US-Pakistani dual citizen to the US for prosecution on terrorism-related charges.
The report highlights that Pakistan has been collecting biometric data at land borders through its International Border Management Security System and enforcing anti-money laundering measures at airports in coordination with other agencies. In 2023, Pakistan also managed the entry of dual-use chemicals to prevent their diversion for making explosives.
The report also mentions Pakistan’s removal from the Financial Action Task Force (FATF) Grey List in October 2022 as a key achievement, following successful efforts to address deficiencies in anti-money laundering (AML) and counter-terrorist financing (CFT) standards.
Despite progress in fighting terrorist financing, the report paints a bleak picture of Pakistan’s security situation. Terrorist attacks increased by more than 50% in 2023 compared to the previous year, with civilians and security forces as primary targets. The provinces of Khyber Pakhtunkhwa and Balochistan were particularly affected, with groups like the Tehreek-e-Taliban Pakistan (TTP), Balochistan Liberation Army, and local ISIS affiliates involved in deadly attacks.
Pakistan’s efforts to counter violent extremism, including deradicalization camps in Khyber Pakhtunkhwa and expanded counter-extremism programs, were noted. However, concerns remain over madressahs failing to comply with regulations on registration and funding documentation, and some continuing to promote extremist ideologies.
The report highlights Pakistan’s active role in multilateral counter-terrorism forums such as the Global Counterterrorism Forum and the South Asian Association for Regional Cooperation. Cities like Karachi and Peshawar are also part of the Strong Cities Network, showing Pakistan’s commitment to regional stability.
Security analysts note that while Pakistan has made progress in combating terrorist financing, the country’s domestic security situation remains fragile. The sharp rise in terrorist activity alongside the progress in tackling terrorist financing presents a complex challenge for Pakistan.
Domestic political issues, such as the Pakistan Tehreek-e-Insaf (PTI)’s call for US sanctions over alleged democratic backsliding, are also raised. However, analysts believe that US strategic interests in counter-terrorism and regional stability will likely take precedence over these concerns.
While Pakistan has earned recognition for its efforts, the rise in terrorist attacks underscores the ongoing challenges in securing both domestic stability and international trust.
