The blasts by themselves were nothing new in Pakistan's commercial capital. The city of late has seen a spurt in sectarian strife and militant activity. But the first public admission by senior officials of the Sindh government—Inspector General of Police Syed Kamal Shah and Muttahida Qaumi Movement (MQM) leader and home minister Aftab Ahmed Sheikh—that the building was actually owned by India's most wanted criminal Dawood Ibrahim warmed the cockles of the Indian intelligence establishment.
"We have been saying it all along," says an Intelligence Bureau official in New Delhi. "But Syed Kamal Shah's statement that the Mumbai mafiosi had a network from Mumbai to Karachi and were working in both countries is confirmation that the D-Company is thriving in Pakistan. Pakistani authorities have always denied that either Dawood or his associates were operating from Pakistani soil."