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Pakistan back on terror watch list after China withdraws objection

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Global money laundering watchdog FATF – the Financial Action Task Force – has put Pakistan back on its terrorist financing watch list after China, which was supporting its closest ally till now, withdrew its objections under intense pressure from the US and others, said media reports.

An official announcement was expected to come later.

A non-Indian diplomatic source from one of the FATF countries confirmed that the group had decided Pakistan would be put back on the watchlist, said media reports. Earlier in the week China, Turkey, and the Gulf Cooperation Council (GCC) were opposing the US-led move against Pakistan but by Thursday night both China and the GCC dropped their opposition, said a report in The India Express quoting a diplomatic source.

“The decision was taken yesterday,” the diplomat said. He added that the financial consequences would not kick in until June, which, in theory, could allow Pakistan the wriggle room to fix the terrorist financing issues. “But the odds of that, particularly in an election year, seem slim,” he added.

Pakistani officials and analysts fear being on the FATF watchlist could endanger its handful of remaining banking links to the outside world, causing real financial pain to the economy just as a general election looms in the summer.

Islamabad has sought to head off the move by amending its anti-terrorism laws and by taking over organizations controlled by Hafiz Saeed, a Pakistan-based Islamist whom Washington blames for the 2008 Mumbai attacks that killed 166 people.

On Tuesday, Foreign Minister Khawaja Asif had  tweeted that Pakistan had received a 3-month reprieve, adding that it was “grateful to friends who helped”. He had claimed a victory, saying that there wasn’t a consensus against the country: the 35-member body works by consensus.

The resolution against Pakistan was moved by the US, which wants to put pressure on Islamabad for not doing enough to comply with anti-terrorist financing and anti-money laundering regulations.

The move is part of a broader US strategy to pressurise Pakistan to cut its links to terror groups in Afghanistan and take more action against terror groups that allegedly have support and sanctuary within Pakistan. Pakistan’s relations with the US have deteriorated over the past year and in his first tweet of 2018, President Donald Trump said Pakistan gave “lies and deceit” in return for American funding.

Being placed on the FATF watch list may impede Pakistan’s access to global markets at a time when its foreign reserves are dwindling and external deficits are widening ahead of national elections in July.

Last week Pakistan vigorously tried to avoid inclusion to the list and announced that it has changed a law and now allowed its security forces to take action against groups on the UN Security Council list – such as Saeed’s charities which are alleged fronts for militant group Lashkar-e-Taiba. It also seized dozens of offices, buildings, seminaries and ambulances belonging to Saeed’s Jamaat-ud-Dawa and Falah-e-Insaniat Foundation.

Pakistan’s Prime Minister Shahid Khaqan Abbasi also said in an interview this month that in the last two-to-three months Pakistan has “more or less complied” with sanctions against Saeed’s organizations. However, Abbasi said more action against Saeed himself was unlikely as there were no charges against him in Pakistan.

On Thursday, White House spokesman Raj Shah said Trump was not yet satisfied with Pakistan’s progress in fighting terrorism. However, Pakistan government claimed any financial squeeze will affect its capacity to fight terrorism and ultimately aid extremism.

Pakistan was on the watch list between 2012-2015 as well but only for money laundering.

The action comes three years after FATF removed Pakistan from the list of countries which are subjected to regular monitoring. However, during the previous period under FATF monitoring, Pakistan managed to negotiate an International Monetary Fund bailout and continued to tap the international bond market.

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India envoy Dinesh Trivedi meets PM Modi after talks with Bangladesh PM Tarique Rahman 

India’s High Commissioner to Bangladesh Dinesh Trivedi met PM Modi after talks with Bangladesh PM Tarique Rahman amid diplomatic tensions.

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India’s High Commissioner to Bangladesh Dinesh Trivedi met Prime Minister Narendra Modi in New Delhi on Tuesday, a day after his meeting with Bangladesh Prime Minister Tarique Rahman in Dhaka.

According to the High Commission of India in Bangladesh, Trivedi sought PM Modi’s guidance on further strengthening the bilateral relationship between India and Bangladesh through a constructive and people-centric approach.

The meeting came a day after Trivedi held discussions with Tarique Rahman on matters of mutual interest and ways to advance ties between the two neighbouring countries.

Dinesh Trivedi Meets Bangladesh PM

During his meeting with Tarique Rahman on Monday, Trivedi conveyed greetings from Prime Minister Modi and reiterated India’s commitment to working with the Bangladeshi administration and its people in a positive, constructive and forward-looking manner.

The two sides discussed issues of mutual interest and explored avenues for strengthening India-Bangladesh relations with a people-centric approach.

The engagement took place at the Prime Minister’s Office in the Cabinet Division at the Bangladesh Secretariat. Trivedi also shared his experience of serving in Dhaka over the previous two months.

Sheikh Hasina Extradition Request

The meeting assumed significance as Bangladesh has expressed hope that India will expedite the extradition process involving former Prime Minister Sheikh Hasina, who was ousted following a student-led uprising in 2024.

According to a statement issued by the Bangladesh Prime Minister’s Office, Dhaka also reiterated its request for India to return individuals it alleges were involved in the killing of Shahid Osman Hadi, a prominent figure associated with the July uprising who was shot on December 12, 2025.

Tarique Rahman stressed the need to create a suitable environment to take forward relations between Bangladesh and India.

Bangladesh Foreign Minister Khalilur Rahman, Prime Minister’s Foreign Affairs Adviser Humayun Kabir and other officials attended the meeting.

India-Bangladesh Ties Amid Diplomatic Friction

The latest high-level engagements come amid diplomatic tensions between the two countries following a virtual press interaction by Sheikh Hasina in New Delhi on August 5.

The event, organised by the Foreign Correspondents’ Club of South Asia to mark the second anniversary of her ouster, prompted strong objections from Dhaka.

During the interaction, Hasina said she remained determined to return to Bangladesh in December and restore democracy, while acknowledging the possibility of imprisonment or a death sentence upon her return.

Bangladesh’s Ministry of Foreign Affairs subsequently registered a strong protest and said the development had affected public sentiment and complicated efforts to strengthen bilateral cooperation.

India has said the government had no involvement in the event. Ministry of External Affairs spokesperson Randhir Jaiswal said it was organised by a private media entity and clarified that New Delhi did not endorse views expressed at the forum.

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Trump, PM Modi will resolve tariff issue over Russian oil trade, says US official

White House Trade Adviser Peter Navarro said Donald Trump and Prime Minister Narendra Modi will resolve the issue over US tariff threats linked to India’s Russian oil trade.

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US President Donald Trump and Prime Minister Narendra Modi will resolve the issue surrounding the threat of US tariffs linked to India’s purchase of Russian oil, White House Trade Adviser Peter Navarro said on Tuesday.

Navarro’s remarks came days after the US Senate passed a bill authorising the US President to impose tariffs of up to 100 per cent on the top five purchasers of Russian oil. The measure argues that such purchases directly contribute to financing Russia’s war in Ukraine.

Navarro comments on India’s Russian oil trade

Speaking to reporters at the White House, Navarro said India was not involved in the oil trade with Russia before the Ukraine war began in 2022.

He alleged that India became heavily involved in the trade after Russia’s invasion and sold refined products on behalf of Russia, which he said helped support the Russian war effort.

“Prior to the Russian invasion of Ukraine, India was not involved in the oil trade with Russia, but afterwards it got heavily involved,” Navarro said.

The White House adviser also claimed that the issue had since been resolved and attributed some of the shift in India’s Russian oil trade to an opinion article he recently wrote in the Financial Times.

Trump and Modi will resolve issue, Navarro says

Navarro said the relationship between Trump and Modi would help address the tariff-related issue.

“The president and your prime minister have a very good working relationship. They are going to work that out amongst themselves,” he said, adding that it was not his place to intervene.

His comments come amid US concerns over countries purchasing Russian oil and proposed measures aimed at imposing additional tariffs on major buyers.

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US Senate passes Russia sanctions bill, India-China face 100% tariff risk

The US Senate has passed a Russia sanctions bill that could allow 100% tariffs on major buyers of Russian oil and gas, including India and China.

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The US Senate has approved a bipartisan Russia sanctions bill that could allow President Donald Trump to impose tariffs of up to 100% on major buyers of Russian oil or natural gas, including India and China.

The legislation was passed by an 86-11 vote and will now move to the US House of Representatives, which is scheduled to reconvene on August 31.

The bill is named in honour of Republican Senator Lindsey Graham, a strong supporter of Ukraine who died on July 11. Graham had pushed for tougher sanctions against Russia over its war in Ukraine.

India and China among major Russian energy buyers

The legislation gives the US president the power to impose tariffs on the world’s top five purchasers of Russian oil or natural gas.

India and China are among those countries, along with Azerbaijan, Hungary and Slovakia.

The bill also contains an exception for countries importing less than 15% of their natural gas from Russia and taking steps to reduce their dependence on Russian supplies.

What does the Russia sanctions bill contain?

Apart from the proposed tariffs, the legislation includes sanctions targeting Russian President Vladimir Putin, senior Russian political and military officials, financial institutions and energy projects.

The bill would also expand US sanctions to older and reflagged oil tankers allegedly used by Moscow to bypass existing restrictions on Russian oil and energy revenues.

At the same time, the White House would have the option to waive sanctions or restrictions if the president certifies to Congress that doing so is in the national interest.

Bill also extends Iran sanctions law

The legislation also contains a provision related to Iran. It would extend the expiration date of the Iran Sanctions Act of 1996 until 2031.

The law penalises companies that invest in Iran’s energy sector.

The bill’s passage in the Senate marks the next step in the US legislative process, but it still needs approval from the House of Representatives before it can move forward.

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