ISLAMABAD, June 1 A veto by the country's security agencies looks to have sealed the fate of the US plans to establish a consulate in Quetta.

“The security establishment has strong reservations about the proposed American consulate in the capital of Balochistan and has not given the required clearance,” a senior official told Dawn on Tuesday.

Although a final decision by Islamabad is still awaited, it's evident that a nod is highly unlikely after strong opposition by the security agencies, which fear that the diplomatic facility may be used as an intelligence base in the province.

The US had recently sought the government's approval for setting up a consulate in Quetta.

“We are awaiting their response. We made the request by diplomatic note to the Ministry of Foreign Affairs,” US embassy spokesman Richard Senlsire told Dawn.

He said “The government of Pakistan is giving every consideration to our request; its due diligence is welcome and we expect their reply soon.”

Foreign Office spokesman Abdul Basit said the government was 'processing' the US request, but refused to comment on suspicions of the intelligence agencies.

The New York Times on Sunday had also reported that the proposed consulate was likely to have a sizeable CIA presence.

American diplomats, however, contend that the consulate was needed to oversee US development projects in the province.

“The United States is endeavoring to effectively provide a large civilian assistance package to Pakistan, and one of the areas we most want to assist is the Balochistan region ... and in order to sustain this effort we need to be close to where the need exists,” Mr Senlsire noted.

Diplomatic observers fear that a refusal to allow the proposed consulate in Quetta would not only affect relations, but could also hamper the implementation of the Kerry-Lugar-Berman assistance package.

Apart from espionage worries, the intelligence agencies had also expressed security concerns about the presence of an American diplomatic facility in Balochistan.

However, Mr Senlsire rejected apprehensions, saying US diplomats would “stand shoulder to shoulder with Pakistani colleagues in accepting those (security) risks”.

He believed that greater American assistance for Balochistan would help end instability in the region.

The concerns shared by intelligence agencies about American involvement in Balochistan are not new.

Earlier in January law enforcement agencies had arrested two Pakistani employees of Karachi's US consulate general while travelling in Gwadar.

Even though the employees were subsequently released on bail, they are facing trial on criminal charges and the vehicle in which they were travelling is still with the police.