India Seeks Financial Pressure on Pakistan Through FATF and World Bank

India is escalating its financial offensive against Pakistan, urging the Financial Action Task Force (FATF) to reinstate its rival on the ’grey list’ for inadequate anti-terror financing controls. The MOVE follows a deadly border conflict that claimed dozens of lives in early May.

New Delhi will also oppose World Bank funding to Islamabad, marking a strategic shift toward economic deterrence. This comes after reciprocal military strikes, including India’s May 7 missile attack that killed 31 in Pakistan, and Islamabad’s claimed retaliation against 40-50 Indian soldiers.

The geopolitical tension follows Pakistan-linked terrorist attacks on Indian soil, including the recent killing of 26 Hindu tourists. Market analysts suggest such conflicts typically drive short-term safe-haven flows into gold and stablecoins, though no direct cryptocurrency market impact is immediately evident.