Pakistan has blocked the vital supply route for Nato troops fighting in Afghanistan after Pakistani troops were killed in an attack allegedly by alliance aircraft.
Up to 28 soldiers died and 14 others were wounded in the strike at a checkpoint near Pakistan's border with Afghanistan, according to reports.
"We have halted the supplies and some 40 tankers and trucks have been returned from the check post," senior government official Mutahir Zeb said.
The US-led International Security Assistance Force (Isaf) said: "We are aware that an incident did take place. We are still in the process of gathering information."
Nato said it would "thoroughly investigate" the incident but Pakistan's foreign office criticised the pre-dawn raid.
"Prime Minister Yusuf Raza Gilani has condemned in the strongest terms the Nato/Isaf attack on the Pakistani post," spokeswoman Tehmina Janjua said in a statement.
"On his direction, the matter is being taken (up) by the foreign ministry in the strongest terms with Nato and the US."
Pakistani officials said the attack happened at the Salala checkpoint, about 1.5 miles from the Afghan border, near where Pakistani troops are fighting Taliban militants.
"Nato helicopters carried out an unprovoked and indiscriminate firing... casualties have been reported and details are awaited," a military spokesman said.
The spokesman said the attack in the Baizai region of the Mohmand tribal area started at about 2am. Convoys were then blocked at Jamrud town, west of Peshawar.
A senior Pakistani military officer said attempts were ongoing to take the dead soldiers to Ghalanai, the headquarters of Mohmand tribal region.
According to an official, helicopters attacked two checkpoints around 1,000ft apart from each other, one of them twice, and two officers were among the dead.
"The latest attack by Nato forces on our post will have serious repercussions as they, without any reasons, attacked on our post and killed soldiers asleep," the senior Pakistani officer said.
Convoys entering Afghanistan from Pakistan have become crucial to Nato operations, as Isaf learned last year when militants repeatedly attacked fuel tankers.
If confirmed, Saturday's attack would be the deadliest Nato strike on Pakistan soil during the 10-year war in Afghanistan. It is likely to destabilise already extremely tense US-Pakistani relations.
It is a little over a year since US helicopters accidentally killed two Pakistani soldiers near the Afghan border, whom the pilots mistook for insurgents.
Pakistan responded by closing the Torkham border crossing to Nato supplies for 10 days until America apologised.
The latest deaths come just days after Pakistan forced its US envoy to resign.
Relations between the US and Pakistan have been especially strained following the killing of al Qaeda leader Osama bin Laden in May.
The unauthorised attack on the terror boss by US special forces inside the Pakistani military garrison town of Abbottabad caused widespread outrage across the troubled nation.
Pakistan called that raid a flagrant violation of its sovereignty.
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