The US-Pak-Haqqani network saga continues.

Prime Minister Syed Yusuf Raza Gilani has rejected America's allegations of Pakistan supporting the Haqqani network.

He has made it clear that Islamabad would not bow to American pressure to step up its fight against terrorism.

"The only reasonable basis for conducting inter-state relations is to adhere to principles of sovereign equality, mutual interest and mutual respect, and Pakistan cannot be pressured to do more,' Gilani said.

Meanwhile, the US administration is making all the right noises to calm down its ruffled ally.

Describing US-Pakistan counterterrorism cooperation as 'essential to our national security', the White House has said that it expects to have continued cooperation from Islamabad in the war on terror.

"There's no question that we have disagreements, complications in our relationship, and we speak openly and candidly with the Pakistani counterparts -- our Pakistani counterparts about this.  But we certainly believe that the relationship is important enough,' said a White House official.