FATF has given Pakistan until June to improve its counter-terror financing operations in line with an internationally agreed action plan or face actions against it as Islamabad foiled India’s attempts to get Pakistan blacklisted.

"The FATF strongly urges Pakistan to swiftly complete its full action plan by June 2020," the Financial Action Task Force said in a statement on Friday after a meeting in Paris.

"Otherwise, should significant and sustainable progress especially in prosecuting and penalising TF not be made by the next Plenary, the FATF will take action," it added.

It said such action could include calling on its members to order their financial institutions give particularly rigorous attention to business relations and transactions with Pakistani clients.

Pakistan was able to neutralize Indian bid with the strong support from China, Turkey and Malaysia. Pakistan also won praise for tightening its financial system and taking other measures to curb terror financing and money laundering, but the watchdog decided to keep the country on the 'grey list' while urging it to ensure compliance with the remaining points of FATF action plan.  

Earlier, Pakistan delegation led by Federal Minister for Economic Affairs Hammad Azhar had submitted the report that showed compliance of at least 14 points out of the total 27 points of the action plan.

Earlier, Islamabad had expressed the optimism that its action would convince the watchdog to take it off the grey list - which entails certain financial restrictions and make it difficult for the country to secure loans from international lenders like IMF and World Bank.