A 68-year-old terrorist alleged to be behind the worst massacre in India's recent history is to launch a political party in Pakistan, adding to tensions between the two countries ahead of the 70th anniversary of their separation.

A charity founded by Hafiz Saeed, who has a $10m US bounty on his head and is currently under house arrest, said on Monday that it plans to launch a political wing.

Mr Saeed is alleged to have masterminded dozens of attacks within India, including the 2008 Mumbai attacks that killed 164 people.

The newly-formed Milli Muslim League party will be headed by Saifullah Khalid, a religious scholar and longtime official of the charity, Jamaat ud Dawa (JuD).