What will Pakistan gain from the FATF decision? Pakistan was first established on the list in 2008 and removed in 2010 only to return to the list in 2012 and stay on it till 2015.

According to the Financial Action Task Force, Pakistan has completed all 34 action items in its 2018 action plan. However, it has not totally departed the grey list — one more stage remains, that of a report by an 'on-site' team, which may take up to seven to eight months.

Since June 2018, Pakistan has been on the FATF's grey list. The FATF, which was founded in 1989, establishes worldwide rules for the prevention of international financial crimes that help terrorism. Pakistan was added to the list in 2008 and then removed in 2010, only to return in 2012 and remain there until 2015.

Since 2018, it has been on the "grey list," also known as the "enhanced monitoring list." In 2021, the world organization emphasized the need for Pakistan to prosecute members of UN-designated terror organizations.

"Getting off the FATF greylist is a highly technical procedure, but at a certain point, the international community needs to acknowledge Pakistan for the honest steps it has taken against certain militant groups and their leaders," said Adam Weinstein, a research fellow at the Quincy Institute for Responsible Statecraft specializing in Pakistan and Afghanistan.

"Initially, Pakistan's authorities concentrated on ancillary concerns rather than the essential issues of terrorist financing and enforcement," Weinstein added. "Let's face it, there are many other nations that pose a larger danger of money laundering than Pakistan yet are not greylisted." Pakistan has been singled out because of terrorism."

Pakistan's economy is reliant on foreign investment. The country's imports, exports, remittances, and access to foreign credit will increase as a result of its removal from the list. Pakistan will have better access to funds in the form of foreign direct investments and financial aid from international donors, which would help the South Asian country shore up its shaky economy.

According to Weinstein, removing Pakistan from the list will eliminate one more self-inflicted obstacle to international direct investment, but many others will remain. "It's difficult to quantify the impact of a greylisting because it incurs repeat expenses, discourages foreign investment, and may even affect consumer purchasing," he added.

The multinational group was created to explore anti-money-laundering procedures, but following the 9/11 attacks, its function was expanded to include anti-terrorist financing. FATF Standards currently provide a globally coordinated response to organized crime, corruption, and terrorism. It also tries to assist authorities in preventing the funding of weapons of mass devastation.

The summit was attended by FATF representatives from 206 members of the worldwide network and its observers, including the International Monetary Fund (IMF), the United Nations, and the World Bank.

"Removal from the grey list would be a significant boost for Pakistan in the midst of a terrible economic crisis," said Michael Kugelman, deputy director and senior associate for South Asia at the Wilson Center.

"...as investors/banks would no longer have to worry about any reputational concerns connected with doing business with Pakistan while it's on a terrorist funding watch list," Kugleman said on the social networking platform Twitter.

Pakistan's bond market will now improve since greylisted countries are the whipping boys of global rating agencies, who are quick to slap downgrades on many fronts of the economy, discouraging international investors.

The economy will begin to improve immediately as the new status promotes investment possibilities, alleviating the government's financial load. Pakistan's borrowing capacity would be enhanced as a result of the move, which will streamline its relations with institutions such as the UN, IMF, and others.

It will also aid in the expansion of foreign trade because Pakistan is no longer a high-risk country. In a word, Pakistan is now in a better position to deal with concerns such as sinking currency, growing trade imbalance, and rampant inflation.