The State Department said it withdrew tax exemptions for Pakistani Embassy employees in Washington and their dependents as of May 15, citing pending tax issues faced by US diplomats in Pakistan.
"The issue is the subject of ongoing bilateral discussions, and we hope to be able to resolve the issue and restore the tax privileges," a State Department spokesman said.
While the latest issue was not linked to politics, the United States last year restricted Pakistani diplomats from traveling outside a 25-mile radius around Washington after charging that Pakistani police routinely harass US diplomats, including through time-consuming traffic stops.
Pakistan is a Cold War ally of the United States but the two countries have had bumpy relations in recent years, with President Donald Trump cutting off some $300 million in military aid.