Pakistan has received more than $33 billion in U.S. assistance since 2002, including more than $14 billion in Coalition Support Funds. This is in addition to another $500 million in aid that was withdrawn earlier this year at the behest of the US Congress.
Earlier this year Mr Trump suspended so-called coalition support funds, accusing Pakistan of rewarding past assistance with "nothing but lies and deceit".
The report by Phil Stewart and Idrees Ali quoted Pentagon spokesman Lieutenant Colonel Kone Faulkner as saying, "Due to a lack of Pakistani decisive actions in support of the South Asia Strategy the remaining 300 (million) Dollars was reprogrammed" and will now be used on "other urgent priorities" if United States Congress approves.
Pentagon spokesman Lt Col Kone Faulkner on Saturday said the USA military would aim to spend the money on other "urgent priorities", the BBC reported.
Experts on the conflict nextdoor in Afghanistan, America's longest war, argue that safe havens in Pakistan have helped insurgents.
ISLAMABAD: Foreign Minister Shah Mahmood Qureshi said that the USA stoppage of $300 million was the money it owed to Pakistan in Coalition Support Funds (CSF), adding that it can not be described as American aid.
Pompeo and the top U.S. military officer, General Joseph Dunford, are scheduled to visit Islamabad on September 5.
"We continue to press Pakistan to indiscriminately target all terrorist groups", Faulkner said on Saturday, adding that the latest aid cut request was pending congressional approval.More news: US Open 2018: Roger Federer sees off Nick Kyrgios in straight sets
"Pakistan takes exception to the factually incorrect statement issued by U.S. State Department" on the phone call, a Foreign Ministry spokesman said on Twitter. "And make that a primary part of the discussion".
It also underscored that Islamabad has yet to deliver the kind of change sought by Washington.
From next year, the U.S. military will cease to extend any aid under CSF, and switch Pakistan and other beneficiary countries such as Egypt, Jordan and others to funds set aside for border security, and the amount earmarked for Pakistan for 2019 is $50 million, as first reported by Hindustan Times.
Khan is set to meet Pompeo in Islamabad on Wednesday.
Reuters reported in August that the Trump administration has quietly started cutting scores of Pakistani officers from coveted training and educational programs that have been a hallmark of bilateral military relations for more than a decade.
Khan inherited a struggling economy, and is expected to negotiate with the International Monetary Fund for a bailout worth upwards of $12 billion, according to the New York Times. The chairman of the joint chiefs of staff Joseph Dunford will accompany him to Pakistan, as they become the first senior United States officials to meet the Pakistan premier since his swearing-in ceremony last month. The US later said it was standing by the readout, refusing to "make a correction" as demanded by Pakistan.
Pakistan has received more than $33 billion in U.S. assistance since 2002, including more than $14 billion in CSF, a U.S. Defence Department program to reimburse allies that have incurred costs in supporting counter-insurgency operations.