The remarks by White House Deputy Press Secretary Raj Shah came amid the ongoing meeting of the Financial Action Task Force (FATF) in Paris where US is leading efforts to place Pakistan on an international terror-financing watch list.
"I know that we have restored some clarity in our relationship with Pakistan. For the first time we're holding Pakistan accountable for its actions," Mr Shah told reporters.
"We've seen modest progress in terms of Pakistan's actual acknowledgement of these concerns, but the President is not satisfied with progress when it comes to Pakistan," Mr Shah said responding to a question on the progress made in the President's South Asia Policy which was announced in August last year.
Trump while announcing his South Asia policy had accused Pakistan of harbouring terror outfits and asked it to do more in the fight against terrorism.
In another news conference, the Pentagon said that the South Asia policy offers an opportunity to Pakistan.
"The (Defense) Secretary believes that Pakistan has an opportunity to do more with respect to regional security, and that it's in its interests to do more with respect to regional security. It's an opportunity, and we would welcome Pakistan's involvement," Pentagon Chief Press Spokesperson Dana White said.