FILE - This July 20, 2001 file photo shows Fazle-ur-Rahman Khalil, commander of the Pakistan-based Islamic militant party Harkatul Mujahedeen, speaks in Karachi, Pakistan. – AP Photo

ISLAMABAD: On the outskirts of the Pakistani capital lives a militant considered so powerful that Osama bin Laden consulted with him before issuing a fatwa to attack American interests.

Fazle-ur-Rahman Khalil heads Harakat-ul-Mujahedeen, a terrorist group closely aligned with al Qaeda and a signatory to bin Laden's anti-US fatwa in 1998. Khalil has also dispatched fighters to India, Afghanistan, Somalia, Chechnya and Bosnia, was a confidante of bin Laden and hung out with 9/11 mastermind Khalid Sheikh Mohammed.

Pakistani authorities are clearly aware of Khalil's whereabouts. But they leave him alone, just as they tolerate other Kashmiri militant groups nurtured by the military and its intelligence agency to use against India.

Khalil is also useful to the authorities because of his unusually wide contacts among Pakistan's many militant groups, said a senior government official who is familiar with the security agencies and who spoke on condition he not be identified fearing repercussions.

Khalil's presence in an Islamabad suburb, confirmed to The Associated Press by Western officials in the region, underscores accusations that Pakistan is still playing a double game – fighting some militant groups while tolerating or supporting others – even after the solo US raid that killed bin Laden on May 2.

The US Congress, enraged that bin Laden found refuge for at least five years down the street from Pakistan's equivalent of West Point, has threatened to cut off the billions of dollars in aid being spent here.

Obama administration officials and US Army officers are trying to rebuild the relationship, considered vital to American hopes of negotiating an end to the Afghan war, but if anything the two sides appear to have drifted further apart in recent weeks.

Pakistan's intelligence service has arrested five Pakistanis who fed information to the CIA before the American raid that killed bin Laden, according to a Western official in Pakistan.

The group of detained Pakistanis included the owner of a safe house rented to the CIA to observe bin Laden's compound in the military town of Abbottabad, a US official said. The owner was detained along with a ''handful'' of other Pakistanis, said the official.

Also, CIA Director Leon Panetta confronted Pakistan's intelligence service about tipping off militants running bomb factories aimed at killing US soldiers in Afghanistan. Pakistan denied tipping them off. The militants belong to the Haqqani network, an Afghan Taliban faction that has ties to al Qaeda.

The house where militant Fazle-ur-Rahman Khalil lives stands behind a high wall in the suburb of Golra Sharif outside Pakistan's capital Islamabad, Wednesday, June 15, 2011. – AP Photo

Khalil's Harakat-ul-Mujahedeen, blamed for a deadly attack on the American Consulate in Karachi in 2002, has links to the Haqqanis and is considered a terrorist organisation by the US. Hundreds of militants are thought to belong to his organisation, though the strength of these groups is the links they share with each other, say analysts.

Khalil himself is not on any US wanted list. In the Islamabad suburb of Golra Sharif, he lives in a nondescript two-story compound that includes a seminary or religious school, hidden behind a traditional high wall protected by barbed wire.

Reached by the AP on his cell phone last month, Khalil dismissed suggestions that he may have been in touch with bin Laden while the al Qaeda leader was hiding in Abbottabad.

''It is 100 percent wrong, its rubbish,'' Khalil said. ''Osama did not have contact with anybody.'' The AP obtained Khalil's phone number from a former aide who has since left the terror organisation.

The Pakistani senior government official who spoke with AP said Khalil has been arrested twice but each time was released on orders from Pakistan's intelligence agency.

''He was significant for Osama bin Laden,'' the official said. ''He has connections with all these groups in Waziristan but he is living here and we don't go after him. He is the one you go to when you need to get to these groups,'' tracking kidnap victims for example.

Khalil was once the boss of terror leader Ilyas Kashmiri, believed killed in a drone strike on June 3.

Like most of the militant groups that get a wink and a nod from Pakistan's security agencies, Harakat-ul-Mujahedeen's primary focus is Kashmir, a picturesque region divided between India and Pakistan and claimed by each in its entirety. Kashmir has been the cause of two of three wars between the South Asian neighbors and brought them perilously close to a nuclear confrontation in 2000.

Khalil's group has kidnapped foreigners in Indian Kashmir, killing one. His group also helped in the 1999 hijacking of an Indian airlines plane that resulted in the release of three militants, including Ahmed Omar Saeed Sheikh, who is now on death row for his part in the 2002 killing of Wall Street Journal reporter Daniel Pearl.

Khalil's militant ties include the anti-Indian Lashkar-e-Taiba group, blamed for masterminding the November 2008 assault on Mumbai that killed 166 people. The AP learned from the same official that seven training camps are operating in Pakistani Kashmir and most of them are run by Jamaat-ud-Dawwa, the name Lashkar-e-Taiba took after being banned.

"There are seven jihadi camps working in Kashmir right now, giving them explosives training," the official said. He said military and intelligence agencies say the camps provide Pakistan with "strategic depth."

"They say we need them, otherwise India will treat us like the rest of South Asia, like they can dictate," he said. "It is only the military and intelligence. The government has no say."

Pakistan has said it has severed its links with these Kashmiri militant groups, though many suspect that is not the case. But it does recognize the dangers posed by some militant groups in another corner of Pakistan — near the Afghan border.

Since deploying troops in 2004 to the region near the Afghan border, Pakistan has lost 3,000 soldiers to militant attacks, more casualties than NATO has suffered over 10 years in Afghanistan.

"Our concern at this point in time is our involvement with northwest Pakistan. We cannot manage to open a new front in central Punjab and in south Punjab," where these groups are headquartered, said a senior military official on condition of anonymity. "Our army is not well trained for counterterrorism in urban centers and we do not have the capacity in our civil law enforcement agencies" to go after these groups.

But many Pakistanis wonder how they got to this place, besieged by militants who bomb them daily while suffering a litany of criticisms and perceived humiliations from their U.S. allies for not doing enough.

A former US ambassador to Islamabad says throwing money at Pakistan won't wean it off jihadi groups so long as its fear of India dictates its security policies.

"It is the perception of India as the primary threat to the Pakistani state that colors its perceptions of the conflict in Afghanistan and Pakistan's security needs," Anne Patterson said in a 2009 cable made public by WikiLeaks.

She said the United States should discourage India from excessive involvement in Afghanistan, and scale back American military sales to New Delhi.

"We need to reassess Indian involvement in Afghanistan and our own policies toward India, including the growing military relationship through sizable conventional arms sales, as all of this feeds Pakistani establishment paranoia and pushes them closer to both Afghan and Kashmir-focused terrorist groups while reinforcing doubts about U.S. intentions," Patterson said in the memo.

Updated Jun 16, 2011 09:52am

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Balakrisna
Jun 16, 2011 03:45pm
Pakistan's military and intelligent services have always routed their energy in perverted passage instead of valor and integrity. They are not only cheating themselves but also future generation of Pakistani youth should suffer unemployment,illiteracy and isolation from international community. It is time the civilian leadership take over the reign and put the terror elements to death penalty instead of awarding it to a poor women for blasphemy. Otherwise, these terror squads will radicalize the future generation and take the country close to anarchy.
Javaad Ali
Jun 16, 2011 04:18pm
Yes. I agree.
KMR Overseas
Jun 16, 2011 04:25pm
Dawn doing excellent job of exposing terror links. May God bless you.
Mohit
Jun 17, 2011 08:40am
This is what I call daredevil journalism. Hats off to dawn for publishing articles which strictly goes against the radicalized views of Pakistani govt., military , intelligence agencies and its masses in general. Hope you go strength to strength and continue with this ideology.
Frodo
Jun 17, 2011 09:40am
Excellent article. The incisiveness of the material cutting right through official statements for once is very refreshing.
sumeet
Jun 17, 2011 10:16am
this is proved beyond doubt that ISI helps,funds and keep them in the name of stratergic depth.this man is on india's list of 50 terrorist given to pakistan.if pakistan's intention are good,it can hand over this terrorist to india to bridge trust deficit and for confidence building.
Murgi Chor Mullah
Jun 17, 2011 11:03am
The Whole world has exhausted all possible adjectives to describe the condition in Pakistan. If this state of affair continues for long with out any check, not even God can help Pakistan. I think the military in Pakistan knows full well by know, that terrorism against India will not win them anything but I dont think they can get off the tigers back now. Decades of instituitionalised hatred and paranoia have resulted in athis lepered mindset. The cure also will take years of civil education to train minds in rationality and tolerance. But it may not serve the Militaries agenda to have a civil and tolerant society in Pakistan.
Abid
Jun 17, 2011 11:30am
Great article and analysis. But the question is does anyone listening, including common people.
aamir
Jun 17, 2011 11:40am
Anne Patterson's statement is right India has always try to keep Her hegemony and dictating her terms to other nations. Whereas, Pakistan cannot let India do this. So, in my point of view our forces are doing the right tactics. After bearing a loss of more than 40,000 people [civilians,army officers and jawans] we are still being questioned our loyalties and asking for do more, do more, stop this mantra! Actually, US playing double game with Pakistan. Don't blame our agencies... Address the cause.
Abdullah
Jun 17, 2011 11:46am
I am shocked, these people were heroes once, and now they are being presented a villains, just because US wishes to hunt them. Our "INTELLECTUAL" media has its guns pointed to army and doing its best to malign army and agencies. No other media in the world ha touches this height. Media should definitely point out corruption in army but should not definitely try to play with fate of the country. I must say media's role is shameful.
Pankaj
Jun 17, 2011 12:58pm
Honest article by a honest journalist..I am happy that Pakistan media still has courage to say truth even it is against the rulers...Its time for both India and Pakistan to work together to eradicate terrorism.
Kashif
Jun 17, 2011 02:55pm
I agree with Abdullah. Now there is an inconsistency in article, as Title says "Terror leader lives freely...." but on the otherhand it goes "Khalil himself is not on any US wanted list". So if he is not in US wanted list, then how do you say he is Terrorist ?