United States slashed $440 million from promised financial aid to Pakistan, bringing down its commitment to just $4.1 billion.

The aid that is part of the Pakistan Enhanced Partnership Agreement (PEPA) 2010 had a cutback of $1.3 billion last year after US Defence Secretary James Mattis and other senior officials cited inaction by the Pakistani government in tackling terror.

US President Donald Trump had complained that Islamabad "has given us nothing but lies & deceit" and "give safe haven" to militants. Pakistan denied the accusations.

The President also expressed his concerns regarding the issue during Pakistan Prime Minister Imran Khan's state visit to Washington last month.

"We were paying USD 1.3 billion to Pakistan as aid, for many years. The problem was...Pakistan was not doing anything for us. They were really subversive. They were going against us. I ended that about a year and a half ago, the USD 1.3 billion (aid)," Trump said.

Trump's interests in Pakistan's crackdown on terror activities are linked to the ongoing Afghan peace talks with Taliban leaders and withdrawal of US troops from the country to end the 19-year war that started in 2001.

US is looking at Pakistan's cooperation to enhance relations and to make sure that the pullout of the US military would not result in a reclaim of Taliban and al Qaeda regime in Afghanistan. The country becoming a militant base for other influencing terror group like the Islamic State.