The key meeting of the FATF, an intergovernmental watchdog that monitors terrorism and criminal financing laws, is scheduled to take place on February 16 and Islamabad wants to avoid FATF blacklisting because this designation would come as a crushing blow to Pakistan's already struggling economy.

Just four days ahead of Financial Action Task Force (FATF) meeting in Paris to decide whether or not Pakistan needs to be blacklisted for failing to take action against terror, an anti-terrorism court in Pakistan sentenced 26/11 Mumbai terror attacks mastermind Hafiz Saeed to five years in jail following his conviction in two terror-funding cases.

The key meeting of the FATF, an intergovernmental watchdog that monitors terrorism and criminal financing laws, is scheduled to take place on February 16 and Islamabad wants to avoid FATF blacklisting at any cost because this designation would come as a crushing blow to Pakistan's already struggling economy.

The FATF blacklisting would isolate Pakistan at the global level and its economy would also be isolated from the international banking system. It will also lead to the introduction of tougher checks and stricter safeguards on transactions involving Islamabad.

Notably, FATF had placed Pakistan on the 'Grey List' in June, 2018 and Islamabad was given a plan of action by FATF to complete it by October 2019 or get placed on the blacklist along with Iran and North Korea.

Reacting to Pakistan's court decision to send Lashkar-e-Taiba chief Hafiz Saeed behind bars for five years, Indian government sources said on Wednesday that the decision has been made on the eve of FATF meeting and this should be noted by the international community. Sources remarked that India and other countries will closely monitor the efficacy of this decision and will see whether Pakistan would take action against other all terrorist entities and individuals operating from territories under its control. Government sources also asserted that Pakistan needs to take concrete steps to bring perpetrators of cross border terrorist attacks, including in Mumbai and Pathankot to justice expeditiously.

Saeed was slapped with a prison sentence of five and a half years and a fine of Rs 15,000 in each case. The sentences of both cases will run concurrently. He was convicted under ATA Section 11-F (2) and 11-N, according to Dawn. Saeed, who is a UN-designated global terrorist, has been arrested 16 times in the past but released every time.