The US panel's decision to reel back aid and make it conditional came after several US officials made scathing remarks about Pakistan's continued use of terrorism to achieve its objectives in Afghanistan and elsewhere.
The ISI specifically directed, or urged, the Haqqani network to carry out the September 13 attack on the US embassy and a Nato headquarters in Kabul, Reuters quoted two unnamed US officials as saying, recalling a similar ISI-sponsored attack on the Indian embassy in Kabul which killed a diplomat and a military attach?.
Elsewhere, US lawmakers also suggested that Pakistani officials had knowledge of illicit money transfers to Times Square bomber Faisal Shahzad, following up serious charges by the US ambassador to Islamabad Cameron Munter to the effect that ''there is evidence linking the Haqqani Network to the Pakistan government".
Such remarks implicitly suggest that Washington believes the Pakistani government to engage in terrorist activity. In a Congressional hearing on terrorism financing on Wednesday, Democratic Representative Richard Blumenthal substantiated this view by saying the major source (of funding) for Shahzad was in Pakistan, ''possibly with the complicity of the financial institutions there, possibly with the knowledge of officials in Pakistan."
The developments on the Hill came a day after Pakistan's chief spook Ahmad Shuja Pasha was summoned to Washington for the third time this year for a dressing down, including threats that the US will act unilaterally against terror groups if Pakistan did not cut ties with them.
But experts say Pakistan is yet to blink on the matter, having gone into a denial mode. Amid increasing pressure to act against the Haqqani group, Pakistani officials are now saying they are not in Pakistan anymore.
Pak puts LeJ leader under house arrest The Pakistani government placed a top Islamist militant under temporary house detention because of his attempts to stoke conflict between Sunnis and Shias since his release from prison two months ago, police said. Malik Ishaq, a founder of the banned Sunni group Lashkar-e-Jhangvi, was accused in dozens of killings, but was freed on bail in July after 14 years in jail after the Supreme Court decided there was not enough evidence to keep holding him.