Shahzad, buraeu chief of Asia Times Online and writer of a book on Al-Qaeda, was missing for two days.

Shahzad's car has also been found. Shahzad had told a rights activist in recent months that he feared the country's intelligence agencies planned to retaliate against him over some of his reporting.

However, a senior intelligence official denied allegations that the agency had anything to do with Shahzad's case. "It's absurd," the official said.

Prime Minister Yousaf Raza Gilani condemned the brutal killing of Shahzad and extended his condolences to the bereaved family.