source:
The GuardianUS suspends Pakistan military aid as diplomatic relations worsenDecision to withhold $800m taken as relations become increasingly fraught following the killing of Osama bin Laden
Saeed Shah in Islamabad
guardian.co.uk, Sunday 10 July 2011 19.16 BST
The Pakistan military declared it did not need US military aid as the White House confirmed that it would withhold some $800m (£498m) in assistance to the country's armed forces.
The row will worsen the already poisonous relationship between the two "allies", which since the unilateral US raid to kill Osama bin Laden in May has lurched towards breakdown.
Pakistan recently expelled US military trainers from the country, limited the ability of US diplomats and other officials to get visas, and restricted CIA operations on its territory. "The Pakistani relationship is difficult but it must be made to work over time. But until we get through these difficulties we will hold back some of the money that the American taxpayers have committed to give them," William Daley, the White House chief-of-staff, told ABC News on Sunday.
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http://www.guardian.co.uk/world/2011/jul/10/us-suspends-pakistan-military-aid