"Miss Farina Arshad, second secretary at the Pakistan High Commission in Dhaka, was constantly being harassed by the Bangladeshi authorities," Xinhua quoted a foreign ministry statement as saying on Thursday.
"The government of Pakistan twice summoned the High Commissioner of Bangladesh and a strong protest was lodged against the treatment meted out to her," it said.
Pakistan decided to withdraw the lady diplomat after the Bangladeshi authorities asked the diplomat to leave for reportedly having "extended financial support to a suspected militant who faces spying charges."
The police was quoted as saying that a member of the outlawed Jamayetul Mujahideen Bangladesh, Idris Sheikh, alleged in a court in Dhaka that he had links with Arshad and that he was given 30,000 taka ($380).
The Pakistani foreign ministry slashed the incessant and orchestrated media campaign against Arshad on spurious charges linking her with so called terrorists.
"Our High Commission in Dhaka issued a strong rebuttal against the baseless and fabricated charges against the diplomat. Following this protest, it was decided to withdraw her. She has since returned back," the statement said.