Pakistan authorities on Saturday arrested an alleged planner of the 2008 Mumbai attacks over a separate case of terrorism financing, officials said.

Zaki-ur-Rehman Lakhvi, a leader of the banned militant organisation Lashkar-e-Taiba (LeT) was arrested in the eastern city of Lahore where he was running a medical dispensary, Punjab's counterterrorism department said in a statement.

He used the dispensary to collect funds for militant activities, it added, without providing details.

LeT, including Lakhvi, is accused by India of plotting the four-day assault that left 166 people dead.

India has long seethed at Pakistan's failure to hand over or prosecute those accused of planning and organising the Mumbai attacks.

Alleged planner of the 2008 Mumbai attacks Zaki-ur-Rehman Lakhvi - here in 2015 - was arrested in Pakistan over a separate case of terrorism financing
Alleged planner of the 2008 Mumbai attacks Zaki-ur-Rehman Lakhvi - here in 2015 - was arrested in Pakistan over a separate case of terrorism financing AFP / AAMIR QURESHI

Lakhvi was detained in 2015 over the attacks but released months later. The government slapped him with a series of detention orders but judges repeatedly cancelled them.

Earlier this year, Pakistan also arrested firebrand cleric and alleged mastermind of the seige Hafiz Saeed, who heads the Jamaat-ud-Dawa, a wing of LeT, for terrorism financing.

Saaed has denied involvement in the attacks.

Lakhvi will be presented before an anti-terrorism court in Lahore, CTD said in the statement.