Pakistan made “meager progress” in dismantling terrorist organizations and continued to face terrorist financing risks in 2021, according to a newly released report from the U.S. Bureau of Counterterrorism.
“The number of attacks and casualties was higher than in 2020,” the report states. “Separatist militant groups conducted terrorist attacks against varied targets in Balochistan and Sindh provinces.”
Pakistan’s major terrorist groups include Tehreek-e-Taliban Pakistan (TTP), Balochistan Liberation Army (BLA), and Islamic State Khorasan Province (ISIS-K). They used various tactics to attack targets, including suicide bombings and targeted assassinations.
The report listed five attacks in Pakistan in 2021, including one incident on Dec. 30, 2021, in which attackers ambushed security officials in North Waziristan. TTP claimed responsibility for the attack that killed four security officials.
Pakistan took steps in 2021 to counter terror financing and restrain India-focused militant groups. The government also revised its 2015 National Action Plan to combat terrorism, but terrorist financing risks persisted.
“Pakistan continued to face significant money-laundering and terrorist financing risks,” the U.S. bureau stated in its report.
“Several terrorist organizations, including U.N.-listed groups, operated in Pakistan, raising funds through a variety of means, including direct support, public fundraising, abuse of non-profit organizations, and through criminal activities,” the report stated.
“Funds were moved through formal and informal channels. Pakistan’s geographic landscape and porous borders increase its vulnerability to terrorist financing and heighten Pakistan’s risks,” the bureau added.
In 2018, the Financial Action Task Force (FATF)—a global money laundering and terrorist financing watchdog—identified Pakistan as a jurisdiction with strategic deficiencies and added it to the FATF gray list, which subjected Pakistan to greater FATF scrutiny.
Terrorism in Pakistan Escalates
The Taliban’s return to power in Afghanistan in 2021 also had an adverse impact on Pakistan’s national security.The deadliest attack occurred during prayers in a mosque in Peshawar on Jan. 30, killing 103 and injuring 200.
Economy Crisis
Pakistan is facing one of its worst economic crises amid dwindling foreign reserves. In 2022, the Pakistani economy grew by only 2 percent, while its foreign reserves held by its central bank currently stand at $3.1 billion, which is not enough to cover one month of exports.The country’s government held 10 days of intensive talks with the International Monetary Fund (IMF) from Jan. 31 to Feb. 9, but could not reach a deal.