In a major blow to Pakistan, the US State Department has told Islamabad to pay from its own funds if it wants to buy F-16 fighter jets.
According to Dawn, Pakistan had reached an understanding with the US for buying eight F-16 planes in which Pakistan was required to pay about $270m from its national funds and the US was supposed to provide the rest from its Foreign Military Financing (FMF) fund.
But the US lawmakers made it clear that they would not allow the Obama administration to use US funds for the deal.
A State Department official told Dawn that Congress had placed a hold on the deal, forbidding the administration from using US funds to let Islamabad buy the planes.
Later, the department confirmed that Pakistan will have to use its own funds if it wants the planes.
This latest development has almost put the deal to a standstill as Pakistan may find it difficult to buy the planes at two and a half times more than the agreed price.