Musharraf, who was addressing businessmen in Karachi late on Sunday night, said the recent allegations levelled against the ISI were a “conspiracy” against Pakistan.

The former military strongman described the intelligence agency as “the first defence line of Pakistan”, saying weakening the ISI would weaken Pakistan and its Armed Forces as well as the war against terror.

Conspiracies against the ISI were aimed at defaming Pakistan and the spy agency was a patriotic institution working for the stability of the country, he said.

Musharraf’s comments came against the backdrop of India and Afghanistan accusing the ISI of being behind the attack on the Indian embassy in Kabul that killed nearly 60 people.

He hit back at his detractors, saying: “The nation will have to decide as to which kind of Islam it wants. The world says that Pakistan is extremist. We will have to prove that we are not so. When I say this, I’m dubbed as an American stooge.”

“We have to decide whether we want a liberal and moderate Pakistan or a terrorist or extremist Pakistan,” he added.

It is widely believed that Musharraf and the Armed Forces played a key role in pressuring the Government to go back on a notification issued last month to place the notorious spy agency under the complete control of the interior ministry.

Musharraf also said he was ready to talk to the Jamaat-e-Islami and the PML-N, which were demanding his impeachment.

The President said a dangerous situation was brewing as the economic situation of the country was very fragile and it had become difficult for Pakistan to survive with such a weak economy.