The United States has rejected reimbursement claims under the Coalition Support Fund by Pakistan of over $400 million citing massive over billing and inadequate substantiation.
Pakistan had claimed a total of $1.4 billion for 2008 in reimbursement, but it is likely to get only $ 997 million from the US.
The delay in the repayments on part of the US and now the refusal of the claims has further increased tension between both countries.
Pakistani military officials criticised the Obama Administration for overlooking the enormous sacrifice the country's security forces have made while helping the US in its 'war on terror' in the region.
"It is too cold-hearted of the US to stress on the money it gives to Pakistan, but disregard its sacrifices. The Americans in every interaction try to make their Pakistani interlocutors realise that they were doing great favour to Pakistan," The Dawn quoted a military official, as saying.
Pakistan has been claiming that it has lost about 2,500 soldiers in the 'war on terror' in Afghanistan and other 8,000 injured.
"Pakistan has suffered more casualties than the combined tally for troops from 43 countries fighting in Afghanistan," said a top military official.
Analysts believe that feelings of resentment in the Pakistan army are serious for US strategists because their success in Afghanistan critically depends on the wholehearted support of the Pakistan military.
Meanwhile, US Ambassador Anne Patterson, in a statement, looked forward to working closely with Islamabad for reconciling the outstanding CSF claims for 2009.
Patterson attributed the delays to inability of the embassy personnel, engaged in processing the payments, to obtain Pakistani visas or get them extended.