The US will no longer subsidise the sale of eight F-16 fighter jets to Pakistan, a senior state department official has told the BBC.
The decision means that Pakistan will have to pay more than $700m (£480m) - two-and-a-half times the original cost - if it wishes to buy the aircraft.
It comes after Congress refused to approve funding for the deal.
Some US lawmakers had accused Pakistan of not doing enough to fight militants. India also objected to the sale.
However, Pakistan has argued that the jets are needed for anti-terror operations, and so the US should help with funding the purchase.