WASHINGTON, May 10: The US Congress on Thursday proposed stopping preferential trade with Pakistan and reducing aid to just 10 per cent of available funds unless Islamabad reopened Nato supply routes.

The lawmakers also approved a proposal to stop all reimbursements to the country if Pakistan continued to ignore US demands.

The restrictions, included in two bills passed separately by House panels, are the harshest since Pakistan joined the US-led war against terror 11 years ago.

The restrictions were endorsed by an overwhelming majority as both Republicans and Democrats castigated Pakistan for closing the supply routes and for allegedly patronising various terrorist groups.

“The bill places appropriate conditions on aid to Pakistan,” said Congressman Adam Smith, a ranking member of the House Armed Services Committee. “It is imperative that Pakistan support our counter-terrorism efforts and work to prevent the interdiction of improvised explosive devices to Afghanistan.”

On Wednesday, a House appropriations panel for foreign aid denied $800 million to Pakistan from a special fund for training and equipping Pakistan’s military in counter-insurgency tactics.

During a debate inside the aid panel, Congressman Jesse Jackson accused Pakistan of “harbouring a fugitive” and likened the US-Pakistan relationship to a “bad marriage”.

This bill has been referred to the full committee but no date has yet been announced for the full committee session.

Last week, government officials in Islamabad had told opposition members and lawmakers opposing the reopening of routes that the United States could slap strict sanctions on Pakistan if the supply lines remained closed.

Although the bill adopted by the aid panel specifies an amount -- $800 million -- the bill passed by the powerful Armed Services Committee on Thursday could have more serious repercussions for Pakistan. It contains language that can be interpreted to stop all military assistance to Pakistan if relations between the two countries continue to deteriorate.

The bill urges Pakistan to tackle all terrorist groups operating from its territory and deal with the menace of improvised explosive devices if it wants to continue receiving US economic and military assistance.

One section of the bill urges “prohibiting preferential procurement of goods or services from Pakistan” until it reopens the ground lines of communication for coalition operations in Afghanistan.

Pakistan closed the supply lines after the Nov 26 US raid on a border post that killed 24 Pakistani soldiers.

Additionally, this section would prohibit all reimbursements to Pakistan until the US secretary of defence provides a report to Congress that outlines: “the model for reimbursement, including how claims are proposed and adjudicated; new conditions or caveats that the government of Pakistan places on the use of its supply routes; and the new cost associated with transit through supply routes in Pakistan.”

The secretary of defence will also have to certify that Pakistan is committed to: supporting counter-terrorism operations against Al Qaeda, its associated movements, the Haqqani network, and other domestic and foreign terrorist organisations.

Another certification will state that Pakistan is “preventing the proliferation of nuclear-related material and expertise; and issuing visas in a timely manner for United States visitors engaged in counter-terrorism efforts and assistance programmes in Pakistan.”

Section 1217 extends the Pakistan Counter-insurgency Fund through fiscal year 2013 but contains amendments that require the secretaries of defence and state to submit an update on the strategy to utilise the fund, and the metrics used to determine progress with respect to the fund. This section would also limit the authority of the secretary of defence to obligate or expend funds made available to the Pakistan Counter-insurgency Fund during fiscal year 2013 to not more than 10 per cent of the amount available until such time as the update is submitted to the appropriate congressional committees.

On Wednesday afternoon, another panel denied $800 million that was requested for a special fund for training and equipping Pakistan’s military in counter-insurgency tactics.

The overwhelming support to the proposed restrictions on Pakistan indicates that the bill will pass the full House because it enjoys bipartisan support.

The bill authorises $554 billion for national defence and $88.5 billion for overseas contingencies operations. It is nearly $4 billion more than President Obama’s budget request.

Separately, the US House Appropriations Subcommittee for State and Foreign Operations has called for a complete ban on economic or security assistance to Pakistan until the secretary of state certifies that Pakistan is cooperating and taking action against terrorist networks. The House subcommittee has proposed that no assistance under Economic Support Fund, International Narcotics Control and Law Enforcement, Foreign Military Financing Programme and the Pakistan Counter-insurgency Capability Fund be released until the secretary of state certifies to the Appropriations Committee. The bill also requires the Pakistani military and intelligence agencies to stop “intervening extra-judicially into political and judicial processes in the country”.