A Pakistani counter-terrorism official says police have arrested an alleged al-Qaida financier in the southern port city of Karachi.

Naveed Khawaja announced the arrest Wednesday but did not say when the man, identified as Mohammad Shabih, was detained.

He described Shabih as a businessman who had two chemical companies in Karachi and neighboring Iran. He says Shabih made large donations to the Afghan Taliban and another extremist group before focusing on al-Qaida's South Asian affiliate.

He says police are investigating possible links to the Islamic State group, which has recently made some inroads in Pakistan and Afghanistan.

Al-Qaida's senior leadership is widely believed to be based in the rugged tribal regions along the Pakistan-Afghanistan border, where Pakistan has been waging a military offensive for more than a year.