China To Provide $1 Billion ‘Aid’ To Pakistan; Move Comes Despite FATF Putting Pakistan On Its Grey List

China has decided to provide a loan of $1 billion to Pakistan. It comes at a time when Pakistan has officially been included in the grey list of Financial Action Task Force (FATF) reported Asia News International (ANI).

The move comes after Pakistan’s foreign exchange reserves dropped to $9.66 billion last week from $16.4 billion in May 2017. With this loan, China’s lending to Pakistan in this financial year ending in June is set to cross $5 billion.

FATF is a global body which intends to combat money laundering and terror financing.

While taking the decision, FATF is reported to have said that Pakistan has failed to act against terror financing on its soil.

During her recent visit to India, United States Ambassador to United Nations Nikki Haley had stated that Pakistan is becoming a safe haven to terrorists.

"We share a commitment to defeating terrorism and the hateful ideology that motivates it. The US values Pakistan as a partner but we cannot tolerate the state becoming a haven for terrorists and hope to see a change," she is reported to have said.

This move by China may dent into FATF’s attempt to contain terror financing, the report stated further.