Two employees of the Inter-Risk company were arrested during the raids in Islamabad, police official Rana Akram told a news conference. Reporters were shown the disputed weapons
- 61 assault rifles and nine pistols. Akram said police were seeking the firm's owner.
U.S. Embassy spokesman Rick Snelsire said the U.S. contract with Inter-Risk took effect at the start of 2009. It is believed to be the first contract the firm has signed with the U.S., said Snelsire, who did not have a figure for its amount.
"Our understanding is they obtained licenses with whatever they brought into the country to meet the contractual needs," he said. "We told the government that we had a contract with Inter-Risk, that Inter-Risk would be providing security at the embassy and our consulates."
Akram said he had no idea about any U.S. links to Inter-Risk, but the company was recently mentioned in local media reports that have been trying to establish the types of private security firms American diplomats use in Pakistan.
In particular, Pakistani reporters, anti-U.S. bloggers and others have suggested the U.S. is using the American firm formerly known as Blackwater
- a claim that chills many Pakistanis because of the company's alleged involvement in killings of Iraqi civilians.
The U.S. Embassy denies it uses Blackwater - now known as Xe Services - in Pakistan.
Scandals involving U.S. private contractors have occurred elsewhere in the region.
In Washington on Friday, the Commission on Wartime Contracting heard testimony about another contractor
- ArmorGroup North America - involving alleged illegal and immoral conduct by its guards at the U.S. Embassy in Afghanistan.
The Iraqi government refused to grant Xe Services an operating license earlier this year amid continued outrage over a 2007 lethal firefight involving some of its employees in Baghdad, although the State Department has temporarily extended a contract with a Xe subsidiary to protect U.S. diplomats in Iraq.
Many of the reports in Pakistan have been fueled by U.S. plans to expand its embassy space and staff. Among the other rumors the U.S. denies: that 1,000 U.S. Marines will land in the capital, and that Americans will set up a Guantanamo-style prison.
The U.S. says it needs to add hundreds more staff to allow it to disburse billions of dollars in additional aid to Pakistan.