The federal government has approved fresh measures to avoid being blacklisted by an international group that monitors money laundering and terror financing, a trio of officials told AP on Wednesday.

Three officials told the news agency that the new measures would prevent suspected militants from operating bank accounts and illegally transferring money by air, land and sea.

They spoke on condition of anonymity because they were not authorized to discuss the decision with reporters.

The Paris-based Financial Action Task Force (FATF) placed Pakistan on a “grey list” earlier this year but gave it time to take action before a further downgrade.

Any further demotion, it is feared, could deter foreign investors and hinder Pakistan's access to international markets amid a fiscal crisis.

The PTI government is set to submit a compliance report to the FATF in the first week of January.