Islamabad/Peshawar, Oct 20 : Pakistan President Asif Ali Zardari has told US Assistant Secretary of State for Central and South Asian Affairs Richard Boucher that Afghan drug dealers are funding terrorists in Pakistan''s tribal areas.

The above statement was made when both leaders met and discussed ''bilateral affairs'' during a ''courtesy call''.

Zardari also informed that Pakistan had stopped Afghan drug dealers from using its territory for smuggling, which was why they had funded terror activities in Pakistan.

According to the Daily Times, Zardari urged Washington to stop infiltration of terrorists from Afghanistan into Pakistan. In return, Boucher assured him of ''all possible help''.

Presidential spokesman Farhatullah Babar, however, denied reports of the meeting at the President''s House. But a spokesman of the President had confirmed the meeting.

Boucher also met NWFP Chief Minister Ameer Haider Khan Hoti at Frontier House.

Awami National Party (ANP) NWFP President Afrasiab Khattak and the principal officer at the US Consulate in Peshawar accompanied them.

According to a statement, Boucher assured Hoti of the United States commitment to strengthen co-operation with Pakistan ''for peace and economic development''.

Hoti mentioned his government''s policies on restoration of peace, economy and political stability, stressing ''a solution to political issues through dialogue''.

But he said his government would not compromise on its writ and protect citizens'' lives and property. (ANI)