Lashkar-e-Taiba (LeT), the Pakistan-based terror group responsible for the November 2008 Mumbai attacks, is facing mounting financial pressure following the death of Chaudhry Muhammad Sarwar, alias Abu Hashim — a US-designated founding member who oversaw the outfit's fundraising operations in Pakistan's Punjab province. Intelligence officials say Sarwar's death compounds a sustained squeeze on LeT's financial networks that has been building for years.

Who Was Sarwar and Why His Death Matters

Sarwar headed LeT's financial wing in Punjab, mobilising funds through Pakistan's formal financial system and leading delegations of businessmen to LeT facilities to solicit donations. Counterterrorism experts describe his death as the second significant blow to the outfit's financial operations after the 2016 death of Javed Khanani, who had headed the organisation's counterfeiting wing. Both men were playing central roles in the group's finances at the time of their respective deaths, according to analysts.

Pakistani agencies have not officially disclosed the cause of Sarwar's death. According to intelligence officials, he — like Khanani before him — was under severe pressure to raise funds, particularly as LeT sought to recover losses sustained during Operation Sindoor, which reportedly destroyed men, assets, and the outfit's primary training facility at Muridke.

A Financial Freefall: From $100 Million to a Fraction

The scale of LeT's financial deterioration is significant. Around 2010, the outfit reportedly operated with an annual turnover of approximately $100 million, of which $5.2 million was earmarked for military operations. According to intelligence officials, current estimates suggest that annual turnover has fallen by 75 to 85 per cent, leaving the organisation under considerable strain.

An Intelligence Bureau official noted that several compounding factors have damaged the outfit's financial health. 'Several factors have damaged the financial health of this outfit, putting considerable pressure on its top operatives, particularly those handling finances,' the official said.

FATF Scrutiny, Demonetisation, and the Proxy Shift

Pressure on LeT's finances intensified from 2016 onwards, when Indian agencies stepped up operations against both its ground networks and financial channels. 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 subsequent scrutiny led to asset freezes and significantly restricted the group's ability to raise funds through established routes.

India's November 2016 demonetisation exercise dealt a separate blow, reportedly causing the near-collapse of LeT's counterfeit currency network and losses worth millions. '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,' an official said. Khanani, who led the counterfeiting wing, reportedly came under immense pressure following that decision — a dynamic officials say may have contributed to his death.

Unable to sustain large-scale financial operations, LeT pivoted to a low-cost proxy model, channelling activity through The Resistance Front (TRF) to minimise financial exposure and operational risk.

Internal Rifts and Pakistan's Financial Injection

The financial squeeze has reportedly triggered internal friction within the organisation. According to intelligence officials, rifts have emerged between ground operatives and the top leadership over resource allocation — tensions that have forced a shift toward lower-cost operations and generated resentment among field-level cadres.

In the aftermath of Operation Sindoor, Islamabad reportedly decided to inject PKR 4 crore into the group to support a resurgence. Intelligence agencies have also reported several meetings in recent months between members of LeT's financial wings and the Pakistani establishment. The Narendra Modi government has consistently maintained a policy of targeting terror financing alongside ground operations, a stance officials say has materially increased pressure on groups like LeT.

What Comes Next

With two key financial figures now dead within a decade, and internal cohesion under strain, analysts say LeT faces a structural challenge in rebuilding its fundraising infrastructure. The organisation's ability to recover will likely hinge on the extent of direct Pakistani state support and whether international scrutiny of its proxy networks intensifies further.