New Delhi, Oct 19 (IANS) The death of Chaudhry Muhammad Sarwar, alias Abu Hashim, a US-designated founding member of the Lashkar-e-Taiba (LeT), has raised questions about the financial health of the Pakistan-based terror outfit, with intelligence officials pointing to mounting pressure on its fundraising networks.
Sarwar was in charge of the LeT’s financial wing in Pakistan’s Punjab province. He oversaw fundraising for the outfit and used Pakistan’s formal financial system to mobilise funds. He also led delegations of businessmen to LeT facilities to solicit donations.
Counterterrorism experts say Sarwar’s death is the second high-profile loss involving the outfit’s financial operations after the death of Javed Khanani in 2016. Both men were playing major roles in the LeT’s finances at the time of their deaths, they added.
An Intelligence Bureau official said the outfit had been facing financial difficulties for some time.
“Several factors have damaged the financial health of this outfit, putting considerable pressure on its top operatives, particularly those handling finances. The group was responsible for the November 2008 Mumbai attacks,” the official said.
The Narendra Modi government has always taken a tough stance against terror. While tackling this menace, the agencies have not only increased the offensive on ground operations, but targeted finances in equal measure.
“This has increased the pressure on these groups, and the top leadership has struggled to cope with it,” the official said.
Another official said the manner in which the LeT had been operating pointed to serious financial problems.
In 2010, the outfit reportedly had an annual turnover of $100 million, of which $5.2 million was earmarked for military operations. Current estimates suggest that its annual turnover has fallen by 75 to 85 per cent, leaving the organisation under considerable strain, the official said.
Operations against the LeT intensified after 2016, when Indian agencies increased pressure on both its ground networks and financial activities. Dossiers detailing the activities of the outfit and its financial proxy, Jamaat-ud-Dawah (JuD), were submitted to international watchdogs, including the Financial Action Task Force (FATF).
The scrutiny led to the freezing of assets linked to the outfit and restricted its ability to raise funds through established channels. With financial transactions facing greater scrutiny, the LeT found it difficult to mobilise money on the scale it had achieved around 2010.
While this was not sufficient to run operations, it moved to a low-cost proxy strategy. This shifted the focus to the creation of The Resistance Front (TRF), which allowed the outfit to minimise its financial exposure.
Another official said that it is not just the FATF that dealt a blow to the finances of the LeT. The November 2016 demonetisation exercise also dealt a major blow to its counterfeit currency network, causing losses worth millions as the racket suffered a near-collapse.
“Although the outfit has managed to revive a part of the trade, it is nowhere near the levels it had achieved before demonetisation in 2016,” the official said.
The official also added that Khanani, who was heading the entire counterfeiting wing of the Lashkar, came under immense pressure after the decision, and this could have resulted in his death.
The Sarwar case, too, appears to be similar, although Pakistani agencies have not given the reason for his death. Sarwar, like Khanani, was under immense pressure to raise funds so that the Lashkar could regain what it lost during Operation Sindoor.
The LeT, during this operation, lost men and assets, including its primary training facility at Muridke. The intelligence agencies have reported several meetings in the past couple of months between members of the Lashkar financial wings and the Pakistani establishment.
Raising funds had become a nightmare, and Sorwar was feeling the pressure. With the Lashkar failing to scale up and Pakistan wanting a resurgence of the group post Operation Sindoor, it was decided that Islamabad would inject PKR 4 crore.
There have been rifts between the operatives and top leadership when it comes to finances. This has led to a major shakeup in the operations and forced the Lashkar to go with low-cost operations. This has led to resentment among the ground operatives and has ultimately translated into immense pressure for the top leadership, especially those in charge of finances and fundraising, an official said.
–IANS
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