Local residents confirmed to the BBC that there "has been a great increase in militant activity" in parts of PoK. Raja Faisal Majeed, a lawyer living in a village near where some of the militant groups have set up base, said: "These people are being protected here. "Sometimes they operate under the guise of a charity, sometimes as a school. We have protested against them to no avail," he said.

Jamaat-ud-Dawah deputy chief Abdurehman Makki told BBC that his group had not purchased any properties in PoK or been involved in any altercations with locals.

Though the groups mentioned in the report are banned under Pakistan's anti-terrorism laws, it does not advocate any action against them other than to keep an eye on their activities, the BBC reported. Pakistan banned the JeM and LeT in 2002 after an attack on India's parliament. However, Information Minister Qamar Zaman Kaira denied such a report had been submitted to the government. "No such report has come before the government which shows that these organisations have revived their activities," he said. "However, if the report was submitted by a secret agency then that is another matter altogether," he added.

The Taliban are reportedly backed by the JeM and Harkat-ul-Mujahideen. JeM was involved in several assassination attempts on top Pakistani officials, including former President Pervez Musharraf. JeM members were also responsible for the kidnapping and murder of Wall Street Journal reporter Daniel Pearl and the group was linked to the attack on India's parliament. The Harkat-ul-Mujahideen is JeM's parent organization and one of the largest militant groups in the world. The LeT is the prime suspect in the Mumbai attacks. The UN Security Council last year declared the Jamaat-ud-Dawah a front for the LeT.