The US said the removal of the ban on the Jamaat-ud-Dawa and Falah-i-Insaniyat Foundation would jeopardise Pakistan's ability to meet its commitments to fight terrorism.
Pakistan plans to ban 10 terror outfits, including 26/11 mastermind Hafiz Saeed-led Jamaat-ud-Dawa and the dreaded Afghan-based Haqqani Network, a move seen by experts as a "paradigm shift" in the country's security policy in the wake of Peshawar school massacre.
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With Intelligence reports suggesting Pakistan-based terrorists planning strikes in India, Home Minister Rajnath Singh attacked the neighbouring country for "not mending its ways" despite being given a befitting reply many times.
JuD and FIF were proscribed under an ordinance that has been lapsed.
The Goa declaration didn't refer to Pakistan-based terrorist groups or cross-border terrorism.
The Indian Army on Saturday said the announcement of the ban on Hafiz Saeed-led Jamaat-ud-Dawa by Pakistan were "good moves" but the effect of these steps needs to be gauged on the ground.
"Make no mistake: whatever LeT chooses to call itself, it remains a violent terrorist group. The US supports all efforts to ensure that LeT does not have a political voice until it gives up violence as a tool of influence," said Nathan A Sales, Coordinator for Counterterrorism at the Department of State.
The placement on to grey list could hurt Pakistan's economy as well as its international standing.
The powerful military establishment, which enjoys considerable influence over policy decisions in Pakistan, was also on board to ban JuD and other terror groups.
Currently placed on the FATF'S 'grey list', Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations by the FATF.
An anti-terrorism court in Pakistan on Wednesday indicted Mumbai terror attack mastermind Hafiz Saeed on terror financing charges and is now being detained at the Kot Lakhpat jail.
"The JuD and the Falah-e-Insaniat Foundation are the other wings of Lashkar-e-Taiba," the PEMRA notification said.
Saeed's arrest is also being seen as a pressure on Pakistan in connection with its commitment to the Financial Act Task Force whose next deadline is in October.
The move comes after United States President Donald Trump accused Islamabad of giving nothing to the US but "lies and deceit" and providing "safe haven" to terrorists.
Pakistan has failed to take concrete action to keep a lid on banned militant outfits like Hafiz Saeed-led Lashkar-e-Tayiba and Jaish-e-Mohammad which continuously resurface under new names challenging the government's authority, a media report said on Wednesday.
The Anti-Terrorism Court in Lahore granted interim bail to Saeed and his aides -- Hafiz Masood, Ameer Hamza, and Malik Zafar -- until August 31 against surety bonds of Rs 50,000 each, Dawn newspaper reported.
The cases have been registered in Lahore, Gujranwala and Multan for collection of funds for terror financing through assets/properties made and held in the names of Trusts/ Non Profit Organisations including Al-Anfaal Trust, Dawatul Irshad Trust and Muaz Bin Jabal Trust.
The designation seek to deny Dakhil the resources to plan and carry out terrorist attacks.
The United States is not taking at face value Pakistan's actions against terrorists outfits.
LeT commander Abdul Rehman al-Dakhil was named as a Specially Designated Global Terrorist (SDGT) by the Department of State.
Mir was called "project manager" of the Mumbai attacks.
Decision will be taken in second democratic transition of power in the nation's 70-year chequered history.
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