"Funding by private individuals and organisations to private entities through informal channels, regardless of the source and country, are being brought under tighter scrutiny in the National Action Plan against terrorism, to choke off any possibility of financing for terrorists and terrorist organisations," said a statement issued by the Pakistan Foreign Office.
The statement further said that offers of economic assistance and project-based assistance by Saudi Arabia are processed by the Ministry of Foreign Affairs, in consultation with the relevant departments and agencies of the government.
The statement assumes significance given the close ties between Pakistan and Saudi Arabia and Prime Minister Nawaz Sharif has personal ties with the Saudi royal family. The oil-rich Kingdom has also provided generous financial help to Pakistan for various development projects.
The Saudi Embassy here has refuted the allegations, saying all funding to Pakistan is decided in consultation with Pakistan officials.
"When the Ministry of Foreign Affairs (in Pakistan) informs the embassy in writing that the financial assistance is in the interest of public welfare, the assistance is provided to the applicant... The assistance has always been beyond any sectarian considerations," said the Embassy in a statement issued yesterday.
"The time has come to stop the influx of Saudi money into Pakistan," the minister said, accusing Saudi Arabia of funding several organisations to promote its Wahabbi ideology, a form of Islam practised in Saudi Arabia that developed only in the 18th century.
The issue of Saudi funding also echoed in the Pakistani parliament when Minister of State for Interior Baligur Rehman informed the Senate on January 30 that Saudi Arabia, Kuwait, Qatar, Iran and the UAE were giving aid to religious seminaries.
