Pakistan’s de facto finance minister, Miftah Ismail, has brushed off concerns that economic growth will suffer because of the country’s re-inclusion on a terrorist financing watch list, and lashed out against the United States for seeking to “embarrass” his nation, Reuters reported. The agency also said in a report from Islamabad that last week Washington persuaded member states of the Financial Action Task Force (FATF) to place Pakistan back on the “grey list” of nations with inadequate terrorist financing or money laundering controls. Pakistan was on the list for three years, until 2015. The diplomatic setback has sparked anger in Islamabad and represented another blow to the worsening relationship between the uneasy allies, who have long differed on how to combat terrorist militants waging war in Afghanistan. Reuters also reported that the move has also heightened concerns that Pakistan is becoming internationally isolated, and that its economy could suffer if global banking intuitions cut links it, or otherwise increase the cost of doing business with Pakistan. Ismail, officially the adviser on finance, revenue and economic affairs to Prime Minister Shahid Khaqan Abbasi, led Pakistan’s negotiations in Paris. He told Reuters that Washington did not seem genuinely eager to see Pakistan boost its terrorist financing regulations and was instead bent on humiliating the country. According to Reuters, Diplomatic and Pakistani government sources say Pakistan fended off a US-led motion on Tuesday as Turkey, China and the Gulf Cooperation Countries (GCC) countries objected to it. But in a break from tradition, the motion was brought up again on Thursday and passed. Ismail said that he urged the United States to allow Pakistan until June to fix any outstanding CTF issues and ceded ground in negotiations to strike a deal, but that the US was determined to see Pakistan suffer. US officials say Pakistan remains weak on terrorist financing prosecutions and has not done enough to combat money-raising capabilities of Islamic charities controlled by Hafiz Saeed, whom the US has designated a terrorist. The officials blame Saeed for the 2008 Mumbai attacks, which killed 166 people. In the run up to the FATF meeting, Pakistan sought to gain favor by seizing control of parts of Saeed’s Jamaat-ud-Dawa (JuD) and Falah-e-Insaniat Foundation (FIF) charities, which the United States terms “terrorist fronts” for militant group Lashkar-e-Taiba (LeT). Saeed, who founded LeT in 1980s, denies orchestrating the Mumbai attacks. Diplomats have cast doubt on whether the takeovers are long-lasting, or simply a short-term move to appease FATF member states and ease pressure on Pakistan. Ismail said Pakistan’s law-enforcement shortcomings are often confused for lack of desire, especially at provincial level, where police officers are poorly trained when it comes to terrorist financing legislation. “The will is there,” he added. Ismail ruled out Pakistan’s retaliating against Washington over the FATF listing. He said the country would keep working to improve its CTF capabilities and win the confidence of Britain, Germany and France, who co-sponsored the US motion in Paris. Pakistan hopes to be removed from the grey list in six to 12 months from June, when it will be officially placed on the watch list, Ismail added.