He said that though India wants to maintain cordial relations with Pakistan, Islamabad seems not too keen on establishing friendly relations with New Delhi.
Addressing the Hindustan Times Leadership Summit in New Delhi, he said terrorism in India is not home grown but is externally aided... It is from Pakistan.
"Terrorism in India is fully Pakistan sponsored. Pakistan says non state actors are involved. But is ISI a non-state actor? ISI is aiding terrorism," he said.
Singh said Pakistan is not taking initiative to punish those involved in 2008 Mumbai terror attacks as the case in that country was moving at a very slow pace.
"Pakistan is not helping in the judicial process. In fact it is trying to scuttle it," he said.
According to the home minister, Dawood has been living in Pakistan and despite many requests, the neighbouring country has not handed over him to India.
"When the Pakistan premier came to India, our prime minister told him to hand over Dawood. We are pursuing it. We are trying to build diplomatic pressure... As he is the most wanted criminal... Right now he is along (Pakistan-) Afghanistan border," he said.
Asked whether India would carry out a "hot pursuit" to nab Dawood, Singh said, "Give us time. Please wait. Strategy cannot be divulged. There is no time frame. But we are trying so that Pakistan hands over Dawood as early as possible. Diplomatic pressure is building up."
On whether India will make efforts to have dialogue with Pakistan, the home minister said New Delhi wants friendly relations with not only Pakistan but with all the neighbouring countries as well as others nations across the world.
"There should be efforts from Pakistan side too to maintain cordial relations. We always want friendly relations. But from their side, there should be at least talk of friendship. There should be feeling to make friendship (by Pak)... But I believe, sometime sooner some breakthrough will come," he said.
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