Armed Lashkar-e Taiba terrorist Bahadur Ali was arrested on July 25 in Jammu and Kashmir.
A day after investigators released a video of the confession of a Pakistani terrorist caught from Kashmir, Pakistan denied that terrorists are crossing into India from across the border.
Referring to terrorist Bahadur Ali as an "alleged Pakistani, who was involved in some activity," a spokesperson from Pakistan's Foreign Affairs Office, said: "We reject claims of cross-border infiltration... Pakistan is very firm on this -- we will not allow our soil for any terror-related act."
"We have, on record, statements made by high-ranking officials, who said that our neighbour has been financing instability across the border," he further added.
On Tuesday, India had summoned Pakistan's high commissioner in Delhi to protest against the infiltration of terrorists from across the border.
A day later, investigators released the 8-minute video containing the confessions of 21-year-old Bahadur Ali, who was arrested from Jammu and Kashmir last month.
In the video, Bahadur Ali is heard saying that he was told by his handlers to "mingle with locals and create trouble" during a protest in the Kashmir after Hizbul Mujahideen terrorist Burhan Wani was killed.
Officers of the National Investigation Agency, who have been questioning him, said his revelations clearly points to Pakistan's involvement in the ongoing unrest in Kashmir.
More than 50 people have died and over 5000 have been injured in the protests in Kashmir Valley that were triggered by the killing of Burhan Wani on July 8.
Several other terrorists have been seen at other rallies held in Kashmir, instigating the locals to stick to the protest schedule released by separatist leaders in the valley.
Investigators say Bahadur Ali also had instructions to carry out an attack and was in touch with his handlers located in Pakistan -Occupied-Kashmir till he was arrested.
Besides arms, he was found to carry GPS and other navigational instruments. Similar equipment was also found on the four other terrorists accompanying him, who were killed in the encounter on July 25.
Pakistan has consistently denied the evidence forwarded by India regarding cross-border terrorism.
The last such instance was in April, when after a visit by a Pakistan team to Pathankot air base to see the site of the attack carried out by Jaish-e Mohammad terrorists, Pakistan said India has failed to provide evidence.
Last week, in a hard-hitting speech in Islamabad, Home Minister Rajnath Singh sent out a sharp message that nations that support terror must be isolated and punished.
"We will not allow our soil for any terror-related act," said a spokesman from Pakistan's foreign ministry office.