"Pakistan faces greater challenges than many other countries because of its risk profile, Hammad Azhar, the minister responsible for economic affairs division, was quoted as saying by Dawn newspaper on Friday.
He was speaking at a meeting of the National Assembly's Standing Committee on Finance and Revenue.
He said that some countries had been removed from the Grey List after just 80 per cent compliance while Pakistan was being pressurised to ensure 100 per cent compliance with the action plan.
"Pakistan is being viewed from a very high threshold; there is a political element to this, he said.
The Asia Pacific Group of the FATF had found serious deficiencies in Pakistan's anti-money laundering measures and combating terror financing frameworks in its mutual evaluation report released a few weeks ago.
"As a result of the Mutual Evaluation Report (MER) carried out by the Asia Pacific Group, Pakistan was under observation till October 2020, The Express Tribune quoted the minister as saying.
Since Pakistan continues to be in the FATF 'Grey List' , it would be very difficult for the country to get financial aid from the IMF, the World Bank, ADB and the European Union. There is also the risk of reduction in rating by Moody's, S&P and Fitch, making Pakistan's financial condition more precarious.
The FATF plenary in October noted that Pakistan addressed only five out of the 27 tasks given to it in controlling funding to terror groups like the Lashkar-e-Taiba, Jaish-e-Mohammad and Hizbul Mujahideen, responsible for a series of attacks in India.
The FATF asked Pakistan to swiftly complete its full action plan by February 2020.