The US military says it is cancelling $300m (£230m) in aid to Pakistan over what it calls Islamabad’s failure to take action against militant groups.
President Donald Trump has previously accused Pakistan of deceiving the US while receiving billions of dollars.
Pentagon spokesman Lt Col Koné Faulkner said the US military would aim to spend the money on other “urgent priorities”.
The move, which needs to be approved by the US Congress, is part of a broader suspension announced in January.
The US state department has criticised Pakistan, a key ally, for failing to deal with terrorist networks operating on its soil, including the Haqqani network and the Afghan Taliban.
“We continue to press Pakistan to indiscriminately target all terrorist groups,” Col Faulkner said in a statement on Saturday, adding that the $300m aid – which had earlier been suspended – should be used elsewhere due to “a lack of Pakistani decisive actions” in tackling the issue.
Foreign aid is a foreign policy tool like any other. It is to be used as leverage to advance America’s interests. If it’s not working, then look for another place to place the fulcrum.