The US military says it is cancelling $300m (£230m) in aid to Pakistan over what it calls Islamabad's failure to take action against militant groups.
President Donald Trump has previously accused Pakistan of deceiving the US while receiving billions of dollars.
Pentagon spokesman Lt Col Koné Faulkner said the US military would aim to spend the money on other "urgent priorities".
The move, which needs to be approved by US Congress, is part of a broader suspension announced in January.
The US state department has criticised Pakistan, a key ally, for failing to deal with terrorist networks operating on its soil, including the Haqqani network and the Afghan Taliban.
The announcement comes just days before US Secretary of State Mike Pompeo is due to visit Pakistan to meet the country's new prime minister, Imran Khan.
In January, the US government announced it was cutting almost all security aid to the country.
BBC Online
BDST: 1415 HRS, SEPT 2, 2018
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