Islamabad, August 16: In a jolt to financially-crunched Pakistan, the United States has slashed the aid being granted to the Islamic republic by nearly $440 million, said a report in a leading Pakistani daily. The aid cut comes days after Pakistan Prime Minister Imran Khan and US President Donald Trump expressed bonhomie following their meeting at the White House.

The aid cut also comes in the backdrop of yet another unsuccessful round of talks between the US and Taliban, which ended inconclusively as both sides fail to agree to the terms of a peace deal. Donald Trump, Imran Khan Discuss Afghanistan, Terrorism in 1st Meet: White House

Pakistan, which was playing a crucial role in the Afghan peace talks, was hopeful of using its position to negotiate a lucrative diplomatic deal with the Trump administration.

The financial aid cut was reportedly conveyed to the Imran Khan government by its US counterpart nearly three weeks ago, reported the The Express Tribune citing top sources in the Ministry of Economic Affairs.

Earlier, in 2018, the United States had slashed aid to Pakistan by $150 million, citing the alleged lack of steps taken by Islamabad to combat terror in regions bordering with Afghanistan.

The financial aid to Pakistan was initiated by the United States under an economic assistance programme, which had the backing of the US Congress through the Kerry Lugar legislation of 2009.

(The above story first appeared on LatestLY on Aug 16, 2019 06:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).