Since last October, when the Financial Action Task Force (FATF) issued a stern warning to Pakistan to show progress regarding money laundering and terror financing by February 2020 or face the consequences, the government has taken several measures to address the most crucial issues. State Bank Governor Reza Baqir said both FATF and the International Monetary Fund (IMF) have appreciated the steps taken by the Pakistani government so far. The country has been on the grey list since 2018 in the wake of our financial wizards’ inability to address the task force’s concerns. At the second edition of Financial Crime Summit in Karachi, Baqir implied that Pakistan would achieve all targets without much difficulty. Interestingly, these claims have been made just before another crucial FATF meeting, and it remains to be seen if other members are just as optimistic. Baqir says FATF has assessed Pakistan’s progress and noted a lot of progress between May to September. If this is true, why did the Asia Pacific Group in July and FATF in October leave stern warnings for Pakistan? The government has indeed taken the FATF issue very seriously and after every FATF meeting (and warning), it has made high-level committees, even involving the armed forces, for high-end results; but all in vain. The FATF grey listing has not only hurt the country’s reputation but economic growth too. It is now soothing to hear that the watchdog is happy with what Pakistan has been doing to curb terror financing, while the IMF’s endorsement is also sending positive signals. Institutional reforms have been carried out, especially in the State Bank of Pakistan, to make terror financing impossible as the bank has made amendments to prudential regulations and seized many accounts to get complete control over trade-related terror financing. Baqir says all banks have improved their progress towards the anti-money laundering by closely watching trade-related terror financing. Money laundering and terror financing have hurt the country the most. Prime Minister Imran Khan has often taken up the issue of money laundering at international forums, and rightly he has urged the developed world to help the developing world to stop the illicit flight of capital to rich countries. If the system is made foolproof, the FATF grey listing will be regarded as something of an opportunity. *