India is preparing to submit a comprehensive dossier to the Financial Action Task Force (FATF), advocating for Pakistan's reinstatement on the grey list due to alleged lapses in countering terror financing and money laundering activities. 

The dossier reportedly contains financial records, intelligence inputs, and international reports indicating Pakistan's continued support for terrorist groups operating against India. India contends that Pakistan has failed to uphold its commitments to curb terror financing, a concern that has gained urgency following recent attacks, including the April 22 Pahalgam incident. 

In addition to approaching the FATF, India is lobbying international financial institutions such as the International Monetary Fund (IMF) and World Bank to reassess their aid to Pakistan. New Delhi argues that foreign assistance is being diverted to fund terrorism, undermining regional stability.

Pakistan was removed from the FATF grey list in October 2022 after demonstrating progress in strengthening its anti-money laundering and counter-terrorist financing frameworks. However, India asserts that recent developments necessitate renewed scrutiny. 

The FATF's upcoming plenary session in June will consider India's submission. Re-entry into the grey list could have significant implications for Pakistan, including diminished foreign investment, increased borrowing costs, and heightened scrutiny from global financial institutions.