In a fresh diplomatic row, a Pakistani High Commission official based in Dhaka was declared persona non grata by the Bangladeshi government and was asked to leave the country.
"Diplomatic official Mazhar Khan was charged by Bangladesh's foreign ministry of running an illegal Indian currency business in Dhaka beside alleged links with militants," Daily Times reported Thursday citing a diplomatic source.
Relations between the two countries have recently been at a low point. 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.
Tensions have also risen between the two countries over executions carried out by the government of Prime Minister Sheikh Hasina of alleged war criminals from the 1971 Liberation War.