Counter-Terrorism

As a long-standing victim of terrorism, Pakistan attaches the highest importance to combating extremism and terrorism in all their forms and manifestations. Terrorism is a global phenomenon that has adversely affected almost every region of the world, undermining international peace, security and stability.

Beyond its grave human toll, terrorism severely infringes upon fundamental human rights and imposes profound economic costs. For more than two decades, Pakistan endured significant loss of life and sustained immense economic damage as a direct result of terrorist violence. Over 90,000 Pakistanis have lost their lives and the nation has endured staggering economic losses exceeding USD 150 billion in this struggle. While the human cost has been devastating, the economic impact has also been far-reaching. These figures do not fully capture the long-term and indirect consequences of terrorism, including lost investment, reduced economic growth and social dislocation.

Pakistan’s progress in countering extremism and terrorism has been made possible through sustained whole of system, highest political commitment and oversight, national resolve, comprehensive state action and the extraordinary sacrifices of its people, including civilians and security forces. A whole-of-nation approach has enabled Pakistan to significantly reduce the threat posed by terrorist and extremist elements, not only for itself but for the region and beyond.

Pakistan has implemented UNSCR 1267 sanctions through freezing of assets by timely issuance of SRO via MoFA’s SRO portal, which is updated in real time in line with the changes made in the listing and delisting to the 1267 Sanctions Regime. Capacity building sessions and workshops are held regularly to enhance understanding and improve coordination among the relevant officials at federal, provincial and district level. Pakistan has also strengthened its legal, institutional and policy framework to combat terrorism, violent extremism and terrorist financing. In addition, amendments to Anti-Terrorism Act have enhanced administrative oversight and strengthened processing of anti-terrorism cases and associated financial investigations.

Pakistan believes that terrorism and violent extremism cannot be eradicated through kinetic actions alone but require societies to evolve through education with emphasis on non-violent approach to reduce the appeal for militancy, extremism and terrorism. A Comprehensive Counter Violent Extremism Strategy has been launched by the Government of Pakistan involving all segments of society; including intelligentsia, academia, youth, women, minorities and religious fraternity. Pakistan’s national narrative against terrorism and extremism is highlighted in Paigham-e-Pakistan, which is a consensus decree issued in 2018 and singed by more than 1800 religious scholars belonging to all Muslim sects in Pakistan. This has been translated into many languages to serve as a template for countering extremist ideology. A research-based Centre of Excellence on Countering Violent Extremism has been established in Khyber Pakhtunkhaw (KP) and Balochistan to address the issues related to terrorism, extremism, on-campus radicalization and intolerance in the societies.

Pakistan continues to play an active and constructive role in international and regional discussions on counter-terrorism at the United Nations, the Organization of Islamic Cooperation, SCO-RATS and other relevant fora. In line with its obligations under the UN Charter, Pakistan remains fully committed to the effective implementation of all relevant United Nations Security Council resolutions related to counter-terrorism.

Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)

Pakistan has implemented significant legal, regulatory, and institutional reforms across its AML/CFT regime, ensuring sustainability and enhancing the overall effectiveness of its AML/CFT system.

AML/CFT Authority was established in 2023 as an overarching body to supervise and coordinate matters pertaining to Anti Money Laundering (AML), Countering Financing of Terrorism (CFT) and Targeted Financial Sanctions (TFS) in line with the requirements of Financial Action Task Force (FATF). The objective and aim of this authority are to coordinate matters at the national level pertaining to AML, CFT and TFS including proposing changes to the policy, laws, rules and regulations to bring it in compliance with the international requirements and best practices and to mitigate the risk of ML/TF/PF in the most effective and efficient way.

Through amendments to the Anti-Money Laundering Act and related counter-terrorism laws, Pakistan has enhanced criminalization of money laundering and terrorist financing, improved mechanisms for asset freezing and confiscation, and strengthened inter-agency coordination. A total of 17 legislative instruments, along with numerous subsidiary instruments have been enacted to strengthen Pakistan’s AML/CFT framework. AML Desks, are working efficiently to enhance inter-agency cooperation against ML and to monitor and expedite information-sharing for money laundering investigations and prosecutions.

To meet FATF requirements, Pakistan improved the effectiveness of its Financial Monitoring Unit (FMU) in analyzing suspicious transaction reports, strengthened supervision by the State Bank of Pakistan (SBP) and SECP, and implemented a risk-based approach to regulation. Authorities also increased investigations, prosecutions, and convictions in money laundering and terrorist financing cases, and ensured the implementation of targeted financial sanctions in line with UN Security Council resolutions.

As a result of these measures and verified on-site assessments, Pakistan was removed from the FATF grey list in October 2022. Pakistan’s reforms demonstrate a structured effort to comply with FATF’s 40 Recommendations and to enhance transparency, accountability, and the integrity of its financial system.

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