US says will review financial assistance

But Pentagon spokesman Geoff Morrell says there is no plan to suspend military aid.

US Secretary of State Condoleezza Rice said on Sunday that Washington would have to "review aid" to Pakistan following President Pervez Musharraf's declaration of emergency rule.

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"We are going to review aid," Rice told a group of journalists in Jerusalem accompanying her on a Middle East mission.

"But we do have concerns, continuing counter-terrorism concerns, and we have to be able to protect American citizens by continuing to fight against terrorists," she said.

"We have a significant counter-terrorism effort in Pakistan and so we have to review this whole situation."

Musharraf's calling of emergency rule on Saturday drew strong censure from the United States, but pointed at the same time to limits in Washington's power over a key ally in its fight against extremism.

"I am disappointed in this decision, sure," Rice said echoing earlier comments by White House spokesman Gordon Johndroe.

"President Musharraf needs to stand by his pledges to have free and fair elections in January and step down as chief of army staff before retaking the presidential oath of office," Johndroe had said in a statement.