Islamabad: Mumbai underworld don Dawood Ibrahim, whom the US recently designated as a 'global terrorist' has shifted his residence from Karachi to Islamabad along with his associates and is in the process of winding up his operations in the Pakistani port city, a media report in Islamabad said.

Quoting diplomatic sources, Pakistani magazine 'Herald' in its cover story on Dawood said that ever- since the US unleashed the war on terror in the aftermath of 9/11, the Indian gangster, wanted for a spate of bomb blasts in Mumbai, has moved out of Karachi to stay out of trouble.

"There are also reports that Dawood is trying to dispose off his properties in Karachi and elsewhere and has taken up residence in Islamabad along with a few close associates," the report said.

It said Pakistan intelligence officials want to see the "saga" on Dawood to end quickly specially in view of the US designation and the subsequent forwarding of his name along with his Pakistani passport and Karachi address to United Nations to initiate necessary action.

Pakistan vehemently denied US assertions that Dawood lived in the country, saying that the address and the passport number mentioned to identify him were "fake".

The magazine said that recent bomb blast at a plaza reportedly owned by the don have raised domestic security issues.

"Besides the Washington related fall-out, the recent bomb blast in Kawish Crown Plaza, which is reportedly owned by Dawood, are raising troublesome domestic security issues."

FBI investigators, who were keeping a close watch on Dawood's activities, believe that the action initiated by US to blacklist him has dealt a "serious body blow" and impaired the gangster's activities.

However, Pakistan intelligence officials have expressed surprise over the US targeting the Mumbai "don" when there were bigger mafia gangs in Thailand, Hong Kong and South Africa that aided al-Qaeda.

"Compared to them, D (Dawood)-Company, is nothing. Yet the US deemed it fit to portray Dawood as a terror ringleader under Pakistan's protection merely to oblige India," it quoted Pakistan intelligence officials as saying.

The Pakistan magazine also confirmed recent Indian media reports that Dawood briefly went out of Pakistan ahead of President Pervez Musharraf's visit to India to attend the Agra summit in 2001.

The gangster left for Singapore in early July 2001 and eventually returned to Karachi from Dubai on the night of July 18.

PTI