The row comes ahead of a planned visit by Pompeo to Islamabad in the first week of September to meet with Khan, who was sworn in as prime minister last week.
The Trump Administration has been at loggerheads with Pakistan after the American president's New Year's tweet, accusing Pakistan of sheltering terrorists.
As the diplomatic row is underway between Pakistan and the USA with the two countries disagreeing about whether State Secretay Mike Pompeo and Prime Minister Imran Khan held discussion over terrorism in a telephonic conversation, Washington has refused to withdraw from its original readout of the phone call.
It all started with a telephonic call between PM Imran Khan and US Secretary of State Mike Pompeo.
"The secretary had a good call with the new prime minister and we look forward to having a good relationship with them in the future", she added.
India on Wednesday had rejected an offer by the United Arab Emirates government to give $100 million to the disaster relief fund for flood-stricken Kerala state.
Prime Minister Imran Khan will chair a meeting of the federal cabinet on Friday (today), Geo News reported.
State Department spokesperson Heather Nauert stood by the readout on Thursday while speaking to reporters hours after her Pakistani counterpart demanded on Twitter an immediate correction to what he dismissed as "the factually incorrect" US statement.
Khan has been critical of the U.S. drone strikes against terrorists in Pakistan as well as along the country's border with Afghanistan.
"We don't want to land on the FATF's black list because it would have a negative impact on Pakistan", he said.
The Pakistani foreign minister said Pakistan's "strained ties" with the US have seen highs and lows and that the new government is determined to work to improve the relationship.
With respect to Afghanistan, both the leaders agreed that peace is a priority for the two countries.