Why did the Lashkar deny the Amarnath yatra attack
If the Lashkar had not issued such a statement, then it would it would have amounted to admitting to the attack. This would have gone horribly wrong for the Lashkar and the Hizbul.
There was a quick denial from the Lashkar-e-Tayiba following the Amarnath yatra attack. While the writing is on the wall that the attack was staged and executed by its commander in South Kashmir, Abu Ismail, the outfit still went ahead and denied it. Worse, it blamed the Indian agencies for the attack.

There are two very good reasons for the Lashkar denying the attack so vehemently. C D Sahay, the former chief of the Research and Analysis Wing tells OneIndia that Pakistan is under immense pressure. The chief of the Lashkar, Hafiz Saeed and Hizbul Mujahideen boss, Syed Salahuddin are under investigation for terror funds.
More than the pressure from the rest of the world, they fear that they will lose local support if they claim the attack. A large number of the local Kashmiris rely on the Amarnath yatra for their bread and butter. None in Kashmir support any sort of action of this nature.
If the Lashkar had not issued such a statement, then it would it would have amounted to admitting to the attack. This would have gone horribly wrong for the Lashkar and the Hizbul and they would have ended up losing local support, Sahay also points out.
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