Wanted in US and India, Islamist leads mass pro-jihad rally in Pakistan

ISLAMABAD (Reuters) - A Pakistani Islamist with a $10 million U.S. bounty on his head appeared openly at a rally in Islamabad on Friday, denouncing India as a terrorist state as thousands of his supporters chanted for "holy war" against the rival nuclear nation.

India has accused Hafiz Saeed of masterminding the 2008 attack on its financial capital Mumbai where gunmen killed 166 people over three days. The United States has offered $10 million for information leading to his arrest and conviction.

As dusk fell, more than 10,000 people gathered in Islamabad in a show of defiance certain to enrage India further following weeks of tensions over the disputed Kashmir border.

"The United States and India are very angry with us. This means God is happy with us," Saeed told the crowd as supporters chanted "Jihad!" ("Holy war") and "War will continue until the liberation of Kashmir". He did not use the word "jihad" himself.

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