The authorities in Lahore on the midnight freed Jamaat-ud-Dawa chief Hafiz Saeed from house arrest as Home department decided not to file any other case against him.
Police guards have been removed from his residence where a large number of supporters gathered to celebrate the end of his house arrest.
A Review Board of the Lahore High Court had ordered him to be freed on Tuesday after authorities failed to file any formal charges against him since his house arrest in January this year.
The board also rejected request of Punjab government for further extention in his house arrest.
His social media spokesman announced in a tweet that Hafiz Saeed is a free man.
A picture of Hafiz Saeed was posted by the social media team where he is seen cutting a cake. The post was titled as The Freedom Cake.
Hafiz Saeed addressed supporters at his Johar Town residence in Lahore in which he vowed to continue his struggle to free Kashmir from India.
"Although there are only few days left in this year but we will continue our struggle in the next year and mobilize people and take forward our movement to free Kashmir. God willing with the support of people we will take Kashmir to its destiny," he said.
Hafiz Saeed has been designated as a declared terrorist by the UN, US and India for his involvement in 2008 Mumbai attacks.
Last month authorities had withdrawn terrorism charges against Hafiz Saeed and Jamaatud Dawa and kept him under detention under Maintenance of public Order (MPO) paving way for the possible release.
Saeed's detention had been extended five times since he was detained in a crackdown after government put JuD and its charity arm Falah-i-Insaaniyat Foundation under sanctions and terror watch list.
Hafiz Saeed challenged his detention in Lahore High Court in February.
His lawyer A.K Dogar had urged the court to order release of Hafiz Saeed and his four aides since no formal charges have been filed against his client after so many months of detention.
In September this year Pakistan's Election Commission had stalled JuD's attempt to enter the political mainstream by rejecting application of Milli Muslim League party which was formed to mainstream Saeed's banned Jamaatud Dawa.
Interior Ministry wrote a letter to the Election Commissios that JuD and its charity wing Falah-i-Insaaniyat are under sanctions within the country and internationally as well.
Michael Gove
Jeremy Hunt