The US has said the Jaish-e-Mohammed (JeM) and Lashkar-e-Taiba (LeT) militant groups continue to pose a regional threat and that Pakistan didn't adequately address America's concerns on terrorism in 2017.
Although al-Qaeda in Afghanistan and Pakistan has been degraded, remnants of its global leadership, as well as its regional affiliate al-Qaeda in the Indian Subcontinent (AQIS), continued to operate from remote locations, it said.
Trump administration had paused funds until Pakistan addressed US concerns
The US State Department made the statements in its annual Country Reports on Terrorism for the year 2017 on Wednesday.
The report said from August-December 2017, the Trump administration placed a pause on spending new Foreign Military Financing for Pakistan until it addressed key US concerns, including the threat posed by the Haqqani Network and other terrorist groups that enjoyed safe haven in Pakistan.
National Action Plan
Terrorists continued to operate from Pakistan despite its action plan
Although Pakistan's National Action Plan calls to "ensure that no armed militias are allowed to function in the country," several terrorist groups focused on attacks outside of the country continued to operate from Pakistani soil in 2017, the report said.
These terrorist groups included the Haqqani Network, besides the LeT and JeM which are directed against India.
Pakistan couldn't eradicate terrorist safe havens: US
Though Pakistan continued military operations to eradicate terrorist safe havens in the Federally Administered Tribal Areas, their impact on all terrorist groups was uneven, said the US State Department report.
Terrorists' safe haven
Pakistan didn't restrict Taliban, Haqqani Network to operate from there
Pakistani military and security forces undertook operations against groups that conducted attacks within Pakistan, such as the Tehreek-e-Taliban Pakistan, the report said.
Even as the Pakistani Government pledged support to political reconciliation between the Afghan government and the Afghan Taliban, it didn't restrict the Afghan Taliban and Haqqani Network from operating in Pakistan-based safe havens and threatening the US and Afghan forces in Afghanistan.
Pakistan court ordered release of LeT leader Hafiz Saeed
Pakistan detained Hafiz Saeed, leader of LeT and its front organization Jamaat-ud-Dawa, in Jan'17, but a Pakistani court ordered his release from house arrest in Nov'17, the report said.
In its report, the State Department rued that progress remained slow on the Pakistan government's efforts to implement UN sanctions related to designated entities and enforce anti-money laundering/countering the financing of terrorism (AML/CFT) controls.
Terrorist groups were not prohibited from raising funds in Pakistan
The Financial Action Task Force (FATF), the report said, continued to note with concern that Pakistan's outstanding gaps in the implementation of the UN Security Council ISIS and al-Qaeda sanctions regime have not been resolved.
It added that the UN-listed entities including LeT and its affiliates were not effectively prohibited from raising funds in Pakistan, nor were they denied financial services.