KARACHI, July 19 (Reuters) - Pakistan's Habib Bank Ltd. denied on Thursday allegations by the widow of slain Wall Street Journal reporter Daniel Pearl that it transferred funds on behalf of charities supporting "terrorist organisations".

Mariane Pearl filed a lawsuit at the U.S. District Court for the Eastern District of New York on Wednesday against al Qaeda, other radical groups and Habib Bank Ltd. over the 2002 abduction, torture and murder of her husband.

"This is totally wrong. I strongly deny that," said Zafar Aziz Osmani, Senior Executive Vice President at the bank, told Reuters. "As an institution, we have never been involved in supporting any terrorist organisation."

Mariane Pearl, whose story is told in the recently released movie "A Mighty Heart" starring Angelina Jolie, alleged in the lawsuit that Habib Bank and its subsidiaries knowingly conducted financial transactions on behalf of charities linked to extremist groups.

"In doing so Habib and its subsidiaries aided, abetted and provided material support in the form of financial services for the terrorist support organisations," the suit said.

Habib Bank is one of Pakistan's biggest banks.

The government holds a 49 percent stake in the bank, though it plans to sell up to 7.5 percent of the bank through an initial public offering later this month.

Through the suit, Pearl's widow is seeking an unspecified amount of money, whatever the court "deems appropriate", to prevent the defendants from committing similar acts.

"Plaintiffs seek to hold responsible those terrorists, terrorist organisations and the supporting charitable and banking organisations for the senseless kidnapping, torture and murder of Daniel Pearl," the suit said.

Pearl was the South Asia bureau chief of the Journal when he was kidnapped in Karachi in January 2002 while seeking an interview with suspected Islamist militants. After several days in captivity he was beheaded on video.

Among those sued is Ahmed Omar Saeed Sheikh, or Sheikh Omar, who was convicted and sentenced to death in a Pakistani court for his role in the abduction and murder. Three others were jailed for life.

Another defendant is Khalid Sheikh Mohammed, a suspected high-ranking al Qaeda leader and Sept. 11 mastermind who is in U.S. custody. Mohammed admitted to a U.S. military tribunal that he beheaded Pearl, the U.S. military said.

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