Pakistan dismissed Indian charges that it was waging a "war of terrorism" against India and said it had nothing to do with the twin bombings in Bombay that killed 52 people.
A foreign ministry statement called the comments by Indian Deputy Prime Minister Lal Krishna Advani earlier in the day "baseless and irresponsible" and not in keeping with recent conciliatory steps between the two countries.
"Pakistan categorically rejects such allegations," it said.
Advani, touring the wreckage outside a Hindu temple and near a landmark, stopped short of accusing Pakistan of direct involvement but dismissed its quick condemnation of the attacks as a "mere formality."
Advani demanded that Pakistan hand over 19 people on a most-wanted list issued by India during 18 months of war tensions which have only recently eased.
"If Pakistan does this, only then will I accept their condemnation, which was issued yesterday, as honest - otherwise it is a mere formality," Advani said.
But Pakistan said it has "already made it clear that the suspects are not on its soil."
"India has so far not provided any evidence about the presence of Indian suspects in Pakistan," the foreign ministry said in a statement.
Indian foreign ministry spokesman Navtej Sarna said: "Action to eliminate terrorism cannot but have a positive bearing on the normalisation process. The dossier of terrorism cannot be overlooked," Sarna said.
"We will continue to monitor the situation as we consolidate the steps already taken, complete those under discussion and give consideration to new ones," he warned.
Police in Bombay said Monday's lunch-hour attacks, in which 150 people were also injured, appeared to be the work of local Islamic activists linked to Lashkar-e-Taiba. Advani said Monday that the Students Islamic Movement of India, a 'shadowy fundamentalist' youth group, could have carried out the blasts by working with Lashkar-e-Taiba.
**PHOTO CAPTION***
Indian Deputy Prime Minister Lal Krishna Advani, in blue jacket, examines the site of a bomb blast in Zaveri Bazaar in Bombay, India, Tuesday, Aug. 26, 2003. (AP Photo/Rajesh Nirgude)