Based on intelligence reports, the Sheikh Hasina government asked Pakistan to remove Mohammad Mazhar Khan, non-diplomat attache at the consular section of the High Commission in Dhaka, after his involvement in terror financing and currency forgery racket was found.
Foreign Office Spokesperson Tasneem Aslam confirmed the official had come back to Pakistan.
"The incident (expulsion) is unfortunate and all allegations against him are baseless," she said.
Tensions have also been rising between the two countries over executions carried out by the Bangladesh government against alleged war criminals from the 1971 liberation war against Pakistan.
In December 2013, Pakistan's envoy in Dhaka had been summoned by the government regarding a resolution adopted by the Pakistani parliament condemning the execution of Jamaat leader Abdul Quader Molla for his involvement in alleged war crimes of 1971.
In January, Bangladeshi police arrested four suspected members of Islamic State in Dhaka including a regional coordinator for the militant group who told police they had been trained in Pakistan.
