The 62-year-old Dr Ghulam Nabi Fai was held by the Federal Bureau of Investigations (FBI) on Tuesday for failing to register as a foreign government agent.

He is alleged to have used $4 million in Pakistani funds to influence the US’ position on Kashmir. Ghulam Nabi Fai can face up to five years in prison if convicted of conspiring to violate the Foreign Agents Registration Act.

Earlier, Pakistan rejected the allegations calling the development as an attempt to ‘defame the just cause of the Kashmiri people.’

“We appreciate the contributions made by the Kashmiri-American Council (KAC) and Dr Ghulam Nabi Fai for the cause of Jammu and Kashmir,” said a foreign ministry statement.

But it did not say whether the government provided him any funds to propagate its view on Kashmir in the US.

The statement voiced concern over what it called ‘slander campaign against Pakistan.’

“A demarche was made to the US Embassy in Islamabad today to register our concerns, in particular the slander campaign against Pakistan,” the statement added.