Pakistan has ordered a review of all co-operation with the US and Nato after the alliance struck a Pakistani army checkpoint, killing at least 24 people.
A committee chaired by Prime Minister Yousuf Raza Gilani also decided to cut supply lines to Nato in Afghanistan.
Mr Gilani called the attack a "grave infringement of Pakistan's sovereignty".
A Nato spokesman admitted it was "highly likely" that Nato aircraft were behind the strike at the Afghan border.....
.... this could be a very costly mistake by Nato, which relies heavily on the route through Pakistan to supply its personnel involved in the war in Afghanistan.
A meeting of the cabinet's defense committee, convened by Mr Gilani, decided the government would "revisit and undertake a complete review of all programs, activities and co-operative arrangements with US/Nato/Isaf, including diplomatic, political, military and intelligence".
It "decided to close with immediate effect Nato/Isaf logistics supply lines", according to a statement issued by Mr Gilani's office. Reports appeared to confirm that Nato traffic was not being allowed through Pakistan's two border crossings with Afghanistan, at Torkham and Chaman.
The committee also said the United States would be asked to vacate, within 15 days, the Shamsi air base, which the US has used to launch drones.