However, it lost most of its fighters in Pakistani military operations and some of the surviving fighters went underground.
In recent years, the terrorist activities of this organization have been undermined by Pakistani operations against terrorist organization along the frontier with Afghanistan.
But for the last few months Pakistani military operations in the tribal areas have been suspended as General Musharraf's government has negotiated with Mr. Muhammad.
The blast occurred on the fourth day of a Pakistani military operation against suspected foreign militants operating in the remote tribal areas on the Afghanistan border.
And whatever occurred, they said, the episode had troubling implications for the future of Pakistani military operations in the country's tribal areas.
But current and former commanders and diplomats say that the review is cursory and that there is no real way to audit the Pakistani operations.
Pakistani operations in Waziristan, the heartland of the Taliban and Al Qaeda, were apparently on hold.
The Board of Investment assists companies planning to invest in Pakistan or to expand their Pakistani operations.
The will of the Pakistani paramilitaries stationed at border crossings to prevent such infiltration was called into question, and Pakistani military operations proved of little use.
The Pakistani operation since January has been larger and more intense than the previous level of enforcement in the border area, he said.