"We continue to press Pakistan to indiscriminately target all terrorist groups", Col Faulkner said in a statement on Saturday, adding that the NZD$450m aid - which had earlier been suspended - should be used elsewhere due to "a lack of Pakistani decisive actions" in tackling the issue.
"The United States has foolishly given Pakistan more than 33 billion dollars in aid over the last 15 years, and they have given us nothing but lies & deceit, thinking of our leaders as fools", Trump tweeted at the start of the year.
Experts on the conflict nextdoor in Afghanistan, America's longest war, argue that safe havens in Pakistan have helped insurgents.
The U.S. Department of Defense has suspended $300 milllion in military funding to Pakistan, citing the country's failure to suppress militant groups.
A Pentagon spokesman, Army Lt. Col. Kone Faulkner, said Sunday the request to Congress was made in June or July and was "due to a lack of Pakistani decisive actions in support of" the USA strategy for bringing the Afghan conflict to a political solution.
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The Taliban reacted to the new strategy by threatening to make Afghanistan a "graveyard" for USA soldiers.
Faulkner also said that another $500 million in CSF was stripped by the Congress from Pakistan earlier this year, which brings the total withheld funds to $800 million. The US and others have long complained that Pakistan provides safe haven to militant networks, allowing them to carry out cross-border attacks in Afghanistan.
The United States routinely calls on Pakistan to do more in the fight against terrorism even though Islamabad has suffered huge losses, both in men and material, in its effort to purge the region of the menace of terrorism. "We will try to improve ties between the two countries".
U.S. Secretary of State Mike Pompeo will reportedly arrive in Islamabad on Wednesday for a visit while en route to India. United States officials have accused Islamabad of overlooking the presence of terrorist groups such as the Haqqani network and Lashkar-e-Taiba on its soil.
This will be Washington's first high-level dialogue with Islamabad since the new government of Prime Minister Imran Khan assumed office following recent elections.
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Announcing the initial suspension of funds in January, the president accused Islamabad of rewarding past US aid with "nothing but lies & deceit".
Qureshi said that now Pak-US ties are suspended, adding that US Secretary of State will be visiting Pakistan soon.
A Pakistani official, speaking on the condition of anonymity, said he was unaware of a formal notification of the USA decision on assistance but said one was expected by the end of September. Pakistan claimed that terrorism was never discussed, and asked the State Department to make a correction in its readout of the call.
Qureshi said that Pakistan Tehreek-e-Insaf government was not responsible for the latest tension or suspension of funds by the USA as the deal to reimburse Pakistan the cost of war on terror was agreed in past.
"It is a calibrated, incremental ratcheting up of pressure on Pakistan", said Stimson Center South Asia Program Co-Director Sameer Lalwani. Analysts note that the USA maintains the largest share of votes at the International Monetary Fund and so would have a strong voice on the terms and conditions of any bailout.
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