North Korean diplomats, using their immunity status, have allegedly been selling illegal liquor in the Pakistani city of Karachi, it has emerged.

The diplomats have been importing expensive alcohol from outside and are said to be involved in selling it at exorbitant prices to the local public, it has been reported.

Consumption of alcohol by Muslims in Islamic Pakistan is strictly banned.

The latest reports have surfaced following several complaints from locals to Pakistani authorities. The Defence Housing Authority (DHA) in Pakistan's largest city of Karachi has now taken up the issue.

North Korean consulate staffers are believed to have brought duty-free liquor into Pakistan using their special privileges.

Pakistani officials, who have been keeping an eye on the staff members of the diplomatic mission, have reportedly found that the North Koreans were involved in the illegal sale of liquor.

To make matters worse, Pakistani authorities mistakenly flagged the issue with top South Korean officials. South Korea made it clear that it has no connection with North Korean diplomats on Pakistani soil prompting Islamabad to extend an apology. Local reports suggest Seoul is now at loggerheads with Islamabad and the Pakistan foreign ministry has been told to step in to ease the tensions.

The North Korean diplomatic mission in Islamabad is said to have officially denied the alleged liquor sale and added that Pakistani authorities are yet to launch any formal inquiry.