The Financial Action Task Force's (FATF) 2025 report highlights Pakistan's involvement in state-sponsored terrorism, emphasizing how terror groups such as Lashkar-e-Taiba and Jaish-e-Mohammed exploit digital platforms including online gaming, cryptocurrencies, e-commerce sites, crowdfunding platforms, and encrypted apps to fund and propagate terrorism. The report also details the use of hawala channels for financing and the employment of VPNs and payment systems to conceal transactions linked to recent terrorist attacks in India, including those at the Gorakhnath Temple and Pulwama. The FATF underscores that terror financing extends beyond money to include logistical and material support for terrorist camps and networks. India's role was pivotal in bringing these evolving terror financing risks to light, bolstering its stance against Pakistan. Experts suggest that international financial institutions like the IMF and World Bank should address these vulnerabilities to prevent exploitation of the formal financial system by terrorist entities.