But the annual funding has declined in recent years as Washington became increasingly disenchanted with Pakistan's quiet support for the Haqqani network and the Taliban, whose attacks have been responsible for the deaths of USA troops in Afghanistan.
Pakistan wants peace and stability in Afghanistan and will contribute to initiatives to achieve that, Foreign Minister Khawaja Asif said, a day after Afghan President Ashraf Ghani called for normalising bilateral ties.
In his celebration address, President Ashraf Ghani called on the Taliban, who have been fighting to drive out worldwide forces backing the government and restore strict Islamic rule to Afghanistan, to accept peace. USA officials claim that Pakistan is supporting the Taliban, while Pakistani officials note that the Afghan Taliban have at least as many "safe havens" in Afghanistan, and the United States has been no more successful at stamping out such areas than Pakistan has. He also warned Pakistan that it has "much to lose" by harbouring terrorists. Pakistan has much to gain from partnering with our effort in Afghanistan.
Firefights between the armies have broken out as Pakistan seeks to fence it.
"We are going to be conditioning our support for Pakistan and our relationship with them on them delivering results in this area".More news: Reshuffle of Cabinet on Sunday, more exits imminent
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Last month, Pakistan and Afghanistan agreed upon the need to restore mutual trust following persistent rift between the two neighbours.
"As a result of our successful foreign policy, we have reached the point where the hopes of the past 40 years will be realised", added the Afghan President. The President of Afghanistan tried to subside the political turmoil by offering negotiations.
"The anti-government armed groups should choose".
Asked if he was sending combat troops or trainers, the secretary said: "Well, let me just be real clear. It is the time that they should choose that whether they are Afghans and have been grown by an Afghan mother or they are a tool of Khawarij (members of an evil group that appeared in the first century of Islam) for creating divisions (among the people of Afghanistan)", he said.