"Saeed has been freed as the Punjab government decided not to detain him further in any other case", a top official in the government told PTI. His freedom had also infuriated Pakistan's arch foe, India. His actions have been a major irritant in Pakistan's relations with the US, and a major source of sustained tensions with India.
The MEA did not issue a formal statement on Wednesday, but is expected to protest Saeed's release in the next few days.
Despite U.S. sanctions on Saeed, the cleric has been living freely in Pakistan and delivering anti-U.S. speeches. He has been under house arrest since January this year.
Pakistan had put Hafiz Saeed under house arrest after considerable pressure from the US.
Saeed, who carries a bounty of $10 million announced by the USA for his role in terror activities, has been under detention since January this year.
"The US is aware of media reports that Pakistan court ordered release of Hafiz Saeed from house arrest", a State Department spokesperson told PTI.
Speaking on the Kulbhusan Yadav case, Raveesh Kumar said that there was a long standing request from Jadhav's mother to visit Pakistan to meet her son and India has responded positively to the offer by Pakistan to arrange meeting of Kulbhushan Jadhav with his wife.
'I should have left them in jail'
However, they were ultimately held under hotel arrest for a few days before returning to the United States. Like I told him, 'They try to make a big deal out of nothing sometimes.' I'm from L.A.
"It's because of Kashmir that India is after me, but all her efforts have been in vain and Allah has set me free". A Pakistani court has ordered his release.
The JuD chief said that the USA, on India's request, pressured Pakistan to detain him.
Saeed is suspected of masterminding the attack Mumbai in 2008 that killed 166 people.
"The review board of the Lahore High Court asked the Punjab government to produce evidence against Hafiz Saeed for keeping him detained, but the government failed", Saeed's lawyer, A.K. Dogar, said.
In May 2008, the United States had designated Saeed as a "Specially Designated Global Terrorist" under Executive Order 13224.
For decades, Pakistan has cast a benign eye on groups like Lashkar-e-Taiba - which is perceived as an asset because its attacks target Indian soldiers in Kashmir - even as the government battles jihadist groups like the Pakistani Taliban that directly threaten the country.