Adopting a tougher line with an ally that U.S. President Donald Trump considers unreliable, the United States halted the disbursement of Coalition Support Funds due to Islamabad's perceived failure to take decisive action against Afghan Taliban militants operating from Pakistani soil.
Pentagon officials say a request was submitted to Congress this summer for authorization to use the $300 million for other purposes.
The United States has now withheld $800 million from the CSF so far this year. "This is our own money which we have used for improving regional security situation and they had to reimburse it to us", Qureshi said.
Meanwhile Trump has repeatedly railed against Pakistan's reluctance or inability to crack down on extremists in its border regions, including militants in the Taliban-linked Haqqani network.
The White House believes that Pakistan's Inter-Services Intelligence agency and other military bodies have long helped fund and arm the Taliban for ideological reasons, but also to counter rising Indian influence in Afghanistan.
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Pakistan has received more than $33 billion in US assistance in the past 16 years, including more than $14 billion in Coalition Support Funds.
Among the issues Mr. Pompeo is expected to raise on his visit is counterterrorism in the region. Pakistan has dismissed all such reports about suspension in U.S. aid, arguing that the United States owed the money to it for expenses incurred on fighting terrorism.
Earlier he told the BBC Urdu that the U.S.in principle should pay back the money to Pakistan because it was spent for a common objective to defeat militancy and create peace and stability.
"On the 5th, the American (secretary of state) Pompeo will be arriving, and we will have a chance to sit down with him". Ali J. Siddiqui, Pakistan's ambassador to the USA, confirmed to NBC News last month that the US has also axed a long-standing military training program between the two countries. "We will listen to him and present our point of view to him as well", he said.
The cut came days before Secretary of State Mike Pompeo is due to touch down in Islamabad for his first visit since the election of new Prime Minister Imran Khan, who has vowed to seek better relations with the USA amid a new push for Afghan peace talks.
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Qureshi said the money was part of the Coalition Support Fund.
"With the visit of the US Secretary of State we have an opening and a beginning can be made, and we will try to build a consensus in areas of mutual interest", he said. The deal was done even before the Pakistan Tehreek-e-Insaf (PTI) government assumed power, he added.
In March, a senior USA official said that Pakistan has "done the bare minimum to appear responsive to our requests", and concerns over a lack of action by Islamabad against militant groups still persist.
"This $300m was neither any aid nor assistance", said Pakistan's new Foreign Minister Shah Mahmood Qureshi on Monday.
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