The US will not provide F-16 fighter jets to Pakistan on subsidised rate. The news comes a day after American lawmakers expressed concern that the aircraft could be used against India and not to combat terrorism.

It comes after Congress refused to approve funding for the deal. As a result, Pakistan will now have to pay the 700 million US dollars to purchase eight F-16s from the US, two-and-a-half times the original cost.

Obama administration had to take the decision not to use tax payers money as Senator Bob Corker, Chairman of the powerful Senate Foreign Relations Committee, has put a hold on it.