Pakistan on Friday angrily rejected a report that the United States has accused Islamabad’s main spy agency of helping to plan a fatal bombing at India’s embassy in Kabul last month.

The New York Times report comes amid growing signs of a rift between Washington and Pakitsan’s Inter-Services Intelligence (ISI) that could affect efforts to tackle Taliban and Al-Qaeda militants.

India and Afghanistan have already accused Pakistan’s shadowy spy agency, which backed the hardline 1996-2001 Taliban regime, of masterminding the embassy bombing.

Amid the rising tensions, the prime ministers of India and Pakistan are set to meet at the eight-nation South Asian Association for Regional Cooperation (SAARC) summit opening on Saturday.

The Times and Wall Street Journal reported that US officials believe the embassy attack was conducted by forces loyal to Afghan militant Jalaluddin Haqqani, who is tied to Al-Qaeda and based in Pakistan’s tribal belt.

IMO, Pakistan is doing what they must to survive.  They remember how the US treated Afghanistan after the Russian pulled out.  The billions that they get from the US is mostly used in their programs against India.  And will the addition of the troops pulled from Iraq really help the situation?