India has escalated its diplomatic efforts against Pakistan by submitting a controversial statement by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur to the Financial Action Task Force (FATF).

Gandapur, a senior leader of Pakistan Tehreek-e-Insaf (PTI), reportedly claimed on July 25, 2025, that Pakistani authorities arrest Taliban members, but certain state institutions, including the Inter-Services Intelligence (ISI) and Military Intelligence (MI), facilitate their release, describing them as “assets” for specific purposes.

India’s government presented this remark as evidence of systemic issues in Pakistan’s efforts to combat terrorism financing, arguing it justifies renewed scrutiny by the global financial watchdog.

The FATF removed Pakistan from its grey list on October 21, 2022, after nearly four years of increased monitoring, following Pakistan’s compliance with anti-terrorism financing measures.

India’s submission frames Gandapur’s statement as a “charge sheet” to highlight alleged institutional lapses.

Indian officials assert that the remark undermines Pakistan’s claims of curbing terror-related activities, particularly in Khyber Pakhtunkhwa, a region plagued by militancy.