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Pentagon Spokesman Lieutenant Colonel Kone Faulkner said, "Due to a lack of Pakistani decisive actions in support of the South Asia Strategy the remaining $300 (million) was reprogrammed,", adding that the Pentagon aimed to spend this money on "other urgent priorities" if approved by US Congress.

With this, the Department of Defence (DoD) has reprogrammed Dollars 800 million CSF destined for Pakistan. "This is our own money which we have used for improving regional security situation and they had to reimburse it to us", Foreign Minister Shah Mehmood Qureshi told reporters September 2 in Islamabad, according to Voice of America.

Mr. Qureshi said that Pakistan Tehreek-e-Insaf government was not responsible for the latest tension or suspension of funds by the U.S.as the deal to reimburse Pakistan the cost of war on terror was agreed in past.

No restoration of USA security assistance to Pakistan before the war in Afghanistan ends, more restrictions may be imposed and Washington has serious concerns about Pakistan's growing economic ties with China, said Assistant Secretary of Defence for Asian and Pacific Security Affairs Randall G. Schriver.

Fresh news reports about suspension of the CSF is expected to further strain US-Pak relationship, which comes ahead of the Islamabad visit of US secretary of state Mike Pompeo.

The funds were initially suspended after President Donald Trump accused Pakistan of rewarding past assistance with "nothing but lies and deceit". Mattis chose not to, a USA official told Reuters.

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Experts on the Afghan conflict, America's longest war, argue that militant safe havens in Pakistan have allowed Taliban-linked insurgents in Afghanistan a place to plot deadly strikes and regroup after ground offensives. The focus in Afghanistan should be a peace process with the Afghan Taliban, and while Pakistan has consistently expressed an interest in supporting a peace process, it can only do so much in the face of political disarray in Afghanistan and reluctance in the U.S. to engage the Taliban in dialogue.

"This $300m was neither any aid nor assistance", said Pakistan's new Foreign Minister Shah Mahmood Qureshi on Monday.

"And to make very clear what we have to do, all of our nations, in meeting our common foe, the terrorists", Secretary of Defense Jim Mattis said on August 28.

"They (the Americans) are squeezing them when they know that they're vulnerable and it is probably a signal about what to expect should Pakistan come to the International Monetary Fund for a loan", said Sameer Lalwani, co-director of the South Asia programme at the Stimson Centre think tank in Washington. Khan is, however, a critic of the U.S. presence in Afghanistan and critics have nicknamed him "Taliban Khan" due to his willingness to talk to Islamist groups. This time may be different, however, as new Khan has said he seeks "mutually beneficial" relations with the United States.

The minister said that while a section of India wanted to make Pakistan weak, the other section wished to peacefully co-exist with Islamabad, the daily said.

Pakistan could again be eligible next year for CSF.