The decision was reportedly taken by FATF at its ongoing plenary in Paris city.

The FATF’s week-long plenary session was held where it was to decide whether Pakistan would continue to remain in its 'Grey List' or put in the 'Black List'.  

FATF has asked Pakistan to enact tougher laws to check terror financing and take strict penal action against individuals involved in it, reported UNI news agency.

The organisation has put Pakistan in "grey list", making it difficult for the country to get financial aid from the IMF, the World Bank, ADB and the European Union.

The FATF gave a 27-point plan to control funding to terror groups like the Lashkar-e-Taiba, Jaish-e-Mohammad and Hizbul Mujahideen or face the risk of being placed on the "black list" with Iran and North Korea.

In Tuesday's meeting, the terror-watchdog directed Pakistan to improve its prosecution system by imposing higher penalties and stricter punishments to those found guilty in terror financing.

On the other hand, Pakistan claimed that it is currently amending its laws for strengthening the prosecution system, Express Tribune reported.

It also cited conviction of Jamatud Dawa leader Hafiz Saeed in two terror-financing cases as a major step against terrorism.

An anti-terrorism court in Lahore convicted Saeed in two terror-financing cases last week and sentenced to a five-and-a-half year prison term.

Hafiz Muhammad Saeed, co-founder of the Lashkar e Taiba, is accused in 2008 Mumbai attacks. United States had announced a bounty of USD 10 million on him.