Officials said Islamabad has found evidence that RAW is funding insurgency in the tribal areas and it is soon going to hand over a dossier regarding it to the United States.
"The top security circles in Islamabad have decided to go for the compilation of huge financial support to Pakistani Taliban militants by the Indian spy agency in connivance with the local facilitators in Afghanistan and it will also be shared with major world powers and other friendly states," The Nation quoted diplomatic sources, as saying.
They claimed that the investigations into financial support by India to the Taliban militants revealed that it was being extended in such a covert manner with the use of several go-betweens that even the militants, who were receiving the fund, had no idea what was the original source of the money.
"A huge sum of one million US dollars was traced being provided to the militants in Mohmand Agency last year. The case of Mohmand Agency is only a single case of massive financial support being given to the militants by the foreign spy agencies and there are many such instances out there in the tribal areas," they added.
However, New Delhi, denied such allegations and termed them as "baseless". Islamabad said that Indian consulates in Afghan provinces extend financial support to Pakistani extremists.