The group is suspected of links with al-Qaeda
Pakistan has decided to freeze the bank accounts of one of the organisations which has been accused by the United States of involvement in terrorism-related activities.
The US President George W Bush had earlier said that Ummah Tameer-e-Nau had been providing nuclear-related information to Osama Bin Laden's al-Qaeda group.
But senior Pakistani officials said so far no decision has been taken about another group, Lashkar-e-Toiba, which has also been accused both by the US and India, of involvement in terrorist activities.
In a related development, India on Friday decided to recall its high commissioner from Pakistan, but Islamabad said it would not react in the same manner.
Nuclear links?
Pakistan's decision to freeze the accounts of the mysterious welfare organisation working in Afghanistan, was not entirely unexpected.
Islamabad had already obliged the US by keeping in detention for over a month the top members of Ummah Tameer-e-Nau, including two scientists who were previously working for Pakistan's nuclear weapon programme.
Pakistani officials who confirmed the decision, however, refused to comment on the US allegation that the group had been passing on nuclear-related information to al-Qaeda.
But so far no action has been taken against Lashkar-e-Toiba, another group that has been accused by President Bush of involvement in terrorist activities in Indian-administered Kashmir.
Tricky implications
It will be a tough decision for Islamabad, as any action against Lashkar-e-Toiba would amount to accepting a similar charge by India against the group.
India says the group was responsible for last week's armed attack on the parliament in Delhi and it has now decided to recall its high commissioner from Islamabad.
Pakistan's response has been a cautious one: it has regretted the move, but has said it would not respond in kind, as it wants to keep the channels of communication open.
But the real tension is mounting on the border between the two countries, as both Delhi and Islamabad has accused each other massive troop deployment.
Pakistan's foreign ministry spokesman has said the latest Indian move to send more troops on the border between Rajasthan and Sindh may further deteriorate the already tense situation.
The spokesman said it was natural for Pakistan to take appropriate measures, an indication that Islamabad plans to deploy more troops along the border with India.