Pakistan said on Saturday it was investigating an Islamist militant leader India accuses of masterminding last year's Mumbai attack, but said he would be arrested only after concrete evidence was provided against him.

India wants Pakistan to prosecute Hafiz Mohammad Saeed, founder of the outlawed Lashkar-e-Taiba militant group, before it resumes a peace process broken off after last November's attach that killed 166 people.

"Hafiz Saeed is being investigated. He has been included in the investigation...," Interior Minister Rehman Malik told reporters.

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