Mushahid Hussain noting that the money being withheld was never meant to be aid in the first place, but rather was money owed to Pakistan by the USA military for services provided during the war.
Pakistan, a majority Muslim nation, has had a rocky relationship with its southeast neighbor India and has been a focus of the United States since the al-Qaeda terrorist group carried out the 9/11 attacks on the Pentagon and World Trade Center in 2001.
The US has maintained the possibility that the aid could be restored if Pakistan changes its ways by moving against the militant groups.
The announcement came weeks after Pakistan's new prime minister Imran Khan took office amid concerns he would remain tolerant of terror groups including the Taliban and the notorious Haqqani network.
Qureshi said that ties between Pakistan and the USA are now "almost non-existent", but he hoped this would change after Pompeo's visit.
Worldwide relations expert Huma Baqai said the Pakistan-US ties had deteriorated like 'never before.' "We still have a chance as Pompeo and Dunford are coming for talks. But leaking this to media before Pak-US talks is annoying".
Earlier this year Mr Trump suspended so-called coalition support funds, accusing Pakistan of rewarding past assistance with "nothing but lies and deceit".
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The aid originally earmarked for Pakistan will now be spent on "other urgent priorities", according to Pentagon spokesman Lieutenant Colonel Kone Faulkner.
With this, the Department of Defence (DoD) has reprogrammed United States dollars 800 million CSF destined for Pakistan. Mattis told reporters on Tuesday that combating militants would be a "primary part of the discussion". Pakistan has consistently denied it grants safe haven to the militant groups.
The Pentagon is shown in Arlington, Virginia, US.
Reuters reported in August that the Trump administration had quietly started cutting scores of Pakistani officers from coveted training and educational programs that have been a hallmark of bilateral military relations for more than a decade.
Pakistan is due to decide whether to seek assistance from the International Monetary Fund (IMF) in a bid to aid its ailing economy.
Unlike before, when an Indian prime minister's visit to Pakistan was responded with terrorist strikes, Sidhu said his trip resulted in a message of peace.
Under the Department of Defense's Appropriations Act of 2018, signed by the president in March, Pakistan would not be refunded for any defense operations unless the Secretary of Defense and Secretary of State certified that it is "cooperating with the United States in 12 counterterrorism efforts". But it will surely rankle in Pakistan and rightly so: more than the aid, it is the hectoring and aggressive tone of the Trump administration towards Pakistan combined with an apparent disregard for a peace process in Afghanistan that is a problem.