Pakistan’s Terror Machinery Exposed: FATF and IISS Reports Back India’s Claims
For decades, Pakistan has been accused by India of nurturing terrorist outfits and sponsoring cross-border terrorism. This long-standing allegation has now gained renewed international attention through two major reports—one by the Financial Action Task Force (FATF) and another by the International Institute for Strategic Studies (IISS), a UK-based think tank.
The Pahalgam Terror Attack: A Catalyst for Global Condemnation
On April 22, 2025, a horrific terror attack rocked Pahalgam in Jammu and Kashmir, claiming the lives of 26 innocent civilians. The attack, which shocked the nation and drew widespread condemnation, has now been directly referenced in a rare statement by FATF.
In its report, FATF categorically stated that such acts of terrorism are not possible without significant financial support. The organization emphasized that no single country can fight terrorism in isolation, calling for a unified global front against terror networks. FATF also announced plans to release a comprehensive analysis on how terrorist organizations are funded—an initiative signaling a shift toward greater accountability.
FATF’s Language Grows Sharper
Observers have noted that the tone and language used in this FATF report are unusually strong and direct. Particularly striking is the reference to “state-sponsored terrorism” as an imminent global threat. This terminology reinforces India’s long-standing claim that Pakistan uses terrorist groups as instruments of state policy.
India has repeatedly accused Pakistan of harboring and funding groups like Lashkar-e-Taiba and Jaish-e-Mohammed, both of which have been responsible for major terror attacks on Indian soil. Now, FATF’s acknowledgment strengthens India’s position in the global arena.
Possible Return of Pakistan to FATF Grey or Black List
The Pahalgam attack marked the third time FATF has directly condemned a specific terror attack. Given this pattern and the growing international pressure, experts believe Pakistan is likely to be re-listed in FATF’s “grey list” during the October review. Some analysts even warn that Pakistan may be moved to the “black list” if corrective actions are not taken swiftly.
The consequences of such a move would be devastating for Pakistan’s fragile economy, limiting its access to international financial aid and increasing its isolation on the global stage.
Operation Sindhu: India’s Precise Military Response
Following the Pahalgam attack, India launched Operation Sindhu, a targeted military strike on terror camps in Pakistan-occupied territories. Unlike previous operations, this time India reportedly ensured zero civilian or military infrastructure casualties, focusing solely on terror hubs.
According to the IISS report, India’s operation was one of the most precise and effective counter-terror actions in modern warfare. It described the mission as “unprecedented in terms of accuracy and strategic depth.” It also validated that the operation specifically struck facilities linked to Lashkar-e-Taiba and Jaish-e-Mohammed.
State Funeral for Terrorists: A Shocking Revelation
Perhaps most alarmingly, the IISS report revealed that the Pakistani government conducted state funerals for the slain terrorists targeted in Operation Sindhu. Military and police officials were present during the ceremonies, indicating direct complicity.
Such actions, the report asserts, remove any ambiguity regarding the Pakistani state’s involvement with terror outfits. It argues that this institutional support undermines regional stability and erodes trust in diplomatic processes.
India Freezes the Indus Water Treaty
Prior to the Pahalgam attack, India had extended an invitation to Pakistan to renegotiate terms under the Indus Waters Treaty. However, Pakistan refused. In response to the terror incident, India not only suspended Operation Sindhu temporarily but also halted implementation of the Indus Water Treaty indefinitely.
India has begun shutting the sluice gates of Salal and Baglihar hydroelectric dams, drastically reducing the water flow into Pakistan. This decision, taken just before key agricultural seasons, is expected to severely impact cotton, maize, rice, sugarcane, and wheat production, and also cripple hydropower generation across Punjab and Sindh provinces.
Pakistan’s Agricultural Future in Peril
According to the IISS assessment, India is now accelerating the construction of new hydroelectric dams along the Chenab and Jhelum rivers, which could further cut water supply to Pakistan. The report predicts that within three years, Pakistan could face a massive agricultural collapse, affecting millions of livelihoods and food security.
This “hydro-diplomatic pressure,” combined with global financial scrutiny, places Pakistan in an unprecedented crisis.
India’s Strategic Isolation of Pakistan Succeeds
India’s diplomatic strategy appears to be bearing fruit. By leveraging international forums, military precision, and water diplomacy, India has successfully isolated Pakistan in the global community.
Even India’s Defense Minister Rajnath Singh has warned that if Pakistan continues sponsoring terrorism, the Indian Navy may be deployed in future operations, signaling that Operation Sindhu may only be the beginning. Singh has also reiterated a previous statement claiming that had the Indian Navy participated in the last operation, Pakistan would have broken into four separate regions.
What Lies Ahead
The IISS report further warns that Jaish-e-Mohammed leader Masood Azhar has threatened retaliation for Operation Sindhu. However, if Pakistan refuses to act against such individuals, the report concludes that another, perhaps even stronger Indian operation is inevitable.
This underscores a new era of India’s zero-tolerance policy against terrorism and those who harbor it. India’s success in rallying international support, exposing Pakistan’s duplicity, and crafting a multi-layered response—military, diplomatic, economic, and environmental—sets a precedent for how democratic nations can respond to state-sponsored terrorism.
Conclusion
The recent statements by FATF and IISS not only validate India’s long-standing accusations but also expose Pakistan’s systemic use of terrorism as a tool of state policy. The pressure is now mounting for Pakistan to dismantle its terror infrastructure or face crippling international consequences.
India’s strategic patience is giving way to calculated, multidimensional retaliation—a model the world may closely study as terrorism continues to threaten global peace.
