In a London court last month, an alleged terrorist testified that he attended a training camp in Pakistan run by the Inter Services Intelligence (ISI), Pakistan's most powerful security agency.
Then a British Defence Ministry think-tank released a report claiming the ISI had been supporting terrorism and extremism - whether in London, Afghanistan or Iraq.
The incidents highlight Pakistan's ambiguous role in the 'war on terror'. It is a frontline American ally, yet it is still accused of being a training hub for terrorists and militants.
Debate on the issue only intensified when President Pervez Musharraf told US television last Sunday that the ISI had not aided Taleban fighters in Afghanistan but that retired intelligence officials could be involved in their support.
'I have some reports that some dissidents, some people, retired people who were in the forefront in ISI during the period of 1979 to 1989, may be assisting with their [Taleban] links somewhere here and there,' General Musharraf said on NBC's Meet the Press.
Some analysts suggest he was intending to rebut criticism of his administration while acknowledging an ISI link to militancy.
'He is deflecting responsibilities by accusing retired ISI officials,' said Ayesha Siddiqa, an Islamabad-based defence analyst. 'But it cannot be so, as it would be an operational nightmare [to have rogue spies at large] when we talk of a sophisticated intelligence operation in the situation like Afghanistan.'