The U.S. has cut its aid to cash-strapped Pakistan by $440 million.
The decision to cut Pakistan’s economic assistance was officially conveyed to Islamabad about three weeks before the visit of Prime Minister Imran Khan to the US.
The agreement was signed in 2010 to make operational the Kerry Lugar Berman (KLB) Act that was passed by the US Congress in October 2009 aimed at making investments in energy and agriculture in Pakistan.
In September 2018, the US military cancelled $300 million in aid to Pakistan for providing a safe haven to militant groups including the Afghan Taliban, Haqqani Network and Al Qaeda.
Washington has long said, Pakistan is allowing Haqqani Network and Al Qaeda militants to carry out cross-border attacks in Afghanistan.
U.S. President Donald Trump had hinted during his meeting with Imran Khan in July that he was unlikely to lift the freeze of security assistance to Islamabad.