"The April-June 2014 reimbursement of $337 million of Coalition Support Fund assistance has been approved by the Secretary of Defence, and we anticipate it being released by the end of the month," Dawn online reported citing a State Department spokesperson as saying.
"The Coalition Support Fund is a demonstration of our commitment to supporting Pakistan's efforts to eliminate terrorist threats throughout Pakistan," the official said. "We welcome the government of Pakistan's commitment to combat all terrorists and ensure that militant groups are not able to re-establish safe havens in Pakistan," the spokesperson added.
US Congress was earlier this month apprised about the Obama administration's intention to release the funds to Pakistan. The mandatory 15-day notice period expired this weekend.
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"The Coalition Support Fund is not military aid," clarified Pakistan embassy officials in Washington.
"It's the reimbursement of what Pakistan spends in combating terrorists along the Afghan border," said one official.
Diplomatic observers in Washington say that the ongoing military operation in Fata has helped increase US confidence in Pakistan's plan for combating terrorists.
In the proposed US budget for 2016, Pakistan continues to be a top recipient of foreign assistance. It would receive $804 million in the next fiscal year, despite a 10 per cent cut from the fiscal 2014.
The 2016 budget request includes $600 million for Pakistan from the OCO (Overseas Contingency Operations) funding.