Islamabad, July 16: Pakistan's Foreign Office (FO) has rejected Afghanistan President Hamid Karzai's "baseless" allegations levelled against its intelligence agencies and armed forces for conducting terrorist attacks.

"Such baseless accusations serve no purpose other than vitiating bilateral atmosphere and creating an artificial crisis in Pak-Afghan relations," the FO said in a statement.

Earlier, the Afghan cabinet announced that it would boycott meetings with Pakistan until "bilateral trust" was re-established.

"Regretfully, the decision of the Afghan cabinet to suspend important bilateral meetings on such flimsy grounds ignores the importance of economic co-operation to the improvement in the living conditions of the Afghani people that has implications for the overall security situation as well," the Daily Times reported the FO statement as saying. (ANI)