The government has also sounded the "highest alert" across Jammu and Kashmir in the wake of Monday's attack in Anantnag district of Kashmir in which seven Amarnath pilgrims, including six women, were killed.
Officials in Delhi, quoting intelligence inputs, said four terrorists, two of them Pakistanis, are suspected to have been involved in the attack.
Ismail was the mastermind of the attack and he was assisted by another Pakistani and two local militants, they said.
Proactive operations have been launched, mainly in south Kashmir, to track down Ismail as investigations including communication intercepts have pointed to his involvement in the attack on the pilgrims, he said.
The official said the attack in Anantnag appears to be reprisal for killing of several LeT terrorists including top commander Bashir Lashkari in an encounter with security forces earlier this month.
"The terrorists are frustrated at the back-to-back losses suffered by them during counter-insurgency operations over the past month or so and have now resorted to attacking civilians and tourists," he said.
The Anantnag attack on the pilgrims came on the same day when police announced arrest of a module of LeT including a Hindu terrorist hailing from Muzaffaranagar in Uttar Pradesh.
Targeting of the pilgrims has led to a massive outrage in Kashmir, with people of the Valley saying that such incidents go against the concept of composite culture and Kashmiriyat.
Meanwhile, as the annual pilgrimage continues, the central government issued the "highest alert" in Jammu and Kashmir.
"Considering the unfortunate loss of life and injuries suffered by the yatris (pilgrims) in the recent terror attack, the entire security apparatus has been put on the highest alert by the ministers," a home ministry statement said.
The ministers visited Srinagar following a directive from Prime Minister Narendra Modi and Home Minister Rajnath Singh.
The central ministers stressed that the entire country was with the Kashmiris and the pilgrims and that all arrangements for a safe and secure pilgrimage would continue with renewed vigour.
So far, more than 1.5 lakh pilgrims have visited the cave shrine located in the mountainous region of south Kashmir. The 40-day long pilgrimage will conclude on August 7.
As many as 21,000 paramilitary personnel in addition to state police forces have been deployed for security of the pilgrimage routes.
The number of paramilitary personnel deployed this year is 9,500 more than last year.
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