America has cancelled US$300 million ($455m) in aid to Pakistan days before a visit by the US Secretary of State, amid frustration that Islamabad is doing too little to rein in Afghan militants.
The Pentagon said it would spend the military aid elsewhere because of a lack of Pakistani action to back US troops in Afghanistan. America has long accused Pakistan and its military spy agency of providing a safe haven and support to Taliban militants.
The announcement to cancel the aid, which was already suspended, came days before Mike Pompeo is due to arrive in Pakistan requesting help to bolster the Government of President Ashraf Ghani in Kabul.
A year into US President Donald Trump's revamped South Asia strategy to end the Afghan conflict, US officials say Islamabad has not done enough to clamp down on the Taliban or its Haqqani network faction. The Taliban continues to control or threaten swathes of the country and recently launched one of its most ambitious attacks, overrunning parts of the city of Ghazni.
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Any peaceful solution to America's 17-year Afghan conflict relies on Pakistan's help, while Islamabad is likely to need US backing for an International Monetary Fund bailout to ease its dire economic woes.