Why did it pull them out?
The Christian Science Monitor reports that:
India also sought to have the UN committee include on the list Hamid Gul, a retired Pakistani Army general who headed the country’s main intelligence agency, the Inter-Services Intelligence Directorate, in the late 1980s. However, China, a close ally of Pakistan that has veto power on the Security Council, apparently blocked Mr. Gul’s inclusion. [CSM]
So China could no longer afford to continue stonewalling on sanctions against the Jamaat-ud-Dawa/Lashkar-e-Taiba, a position that can only be understood as part of its strategy of containing India. But saving General Hamid Gul’s skin…now, that’s interesting.