Pakistan has narrowly avoided being targeted by a global watchdog over terrorism financing, the foreign minister said, after reports that the US had supported a motion to place its ally on the group's watchlist.

The country was granted a three-month reprieve by the Financial Action Task Force (FATF), according to a tweet late Tuesday by Khawaja Asif, after a meeting in Paris failed to reach agreement on the matter.

"No consensus for nominating Pakistan," Asif wrote, adding that the forum instead proposed a three-month pause along with the submission of a new report to the body.

FATF declined comment, with a spokeswoman saying any formal decision would be made by Friday.

Earlier this month Pakistan quietly amended its anti-terror laws to ban groups listed as terrorists by the UN.

Following the move, officials began seizing assets from the Jamaat-ud-Dawa group, whose leader Hafiz Saeed is a prime suspect in the 2008 Mumbai attacks.

Reports claimed earlier this month that the US had tabled a motion to add Pakistan to the FATF watchlist, as ties fray over accusations that Islamabad gives safe haven to militants who launch attacks in neighbouring Afghanistan.

The FATF move rattled officials and businesses, who fear any type of financial restrictions could crimp the country's economic prospects.