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 Pakistani officials say federal investigators have raided the offices of a software company after a report in The New York Times said it made millions of dollars marketing fake degrees worldwide.

Tuesday's raids on offices in the southern city of Karachi and elsewhere came after the newspaper said the Axact company marketed online degrees from several nonexistent schools and universities, charging clients thousands of dollars for fake credentials.

Shahid Hayat, director of the Federal Investigation Agency, confirms it has launched an investigation into the company.

Interior Minister Chaudhry Nisar Ali Khan says he asked the FIA to investigate whether the Times report was accurate.

The company denies the allegations and says it will take legal action against the newspaper.