The United States military has made a decision to cancel over $300 million (Rs 2,130 crore) in aid to Pakistan as Islamabad has failed to take action against militant groups, the Pentagon said on Saturday.
The Haqqani Network and the Afghan Taliban have launched attacks in Afghanistan that have killed United States forces, and USA officials have long argued that Pakistan, and specifically its ISI intelligence service, provides safe havens to them.
Those include the Haqqani Network and Afghan Taliban, both of which are said by United States officials to operate freely from Pakistani soil.
On Sunday, Pakistan's Foreign Minister, Shah Mehmood Qureshi, said he hopes Pompeo's visit "will be done in an amicable matter, strengthening the ties", reported local press.
Pakistan has received more than $33 billion in US assistance in the past 16 years, including more than $14 billion in Coalition Support Funds.
Senior officials at the foreign ministry told The Nation that though expected, the decision had still irked Islamabad as Pakistan wanted to keep the "atmosphere healthy" before Pompeo's visit.
In March, a senior U.S. official said that Pakistan has "done the bare minimum to appear responsive to our requests", and concerns over a lack of action by Islamabad against militant groups still persist.
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.
US officials had previously held out the possibility that Pakistan could win back the funding if it showed that it was taking decisive actions to root out insurgents.
"It is a calibrated, incremental ratcheting up of pressure on Pakistan", said Sameer Lalwani, co-director of the South Asia program at the Stimson Center think-tank in Washington.
"It was a very warm welcome", said Sehar Tariq of the US Institute for Peace, "signalling a desire to work closely with Iran while the US is trying to shut co-operation could be seen as a direct contradiction [of American policy]".
Yesterday, the US Military confirmed that the Coalition Support Funds had been cut.
Pakistan is also likely to approach the International Monetary Fund (IMF) for a bailout package soon.
He said Pakistan welcomes the forthcoming visit of Mr. Pompeo as it will help to understand each other's point of view.
Under the Department of Defense's Appropriations Act of 2018, signed by the president in March, Pakistan would not be refunded for any defense operations unless the Secretary of Defense and Secretary of State certified that it is "cooperating with the United States in 12 counterterrorism efforts". In his victory speech, he said he wanted "mutually beneficial" relations with Washington.