"I am opposed to the new legislation. I have personally talked about the bill. We will see if the bill is passed or not. I agree that the bill is contrary to what we have done. It goes against that," President Musharraf told private ARY television.
"They (the US) should be thankful to us and not impose restrictions when we are doing a lot. I am opposed to the bill," he said.
The proposed American legislation urges the US President to certify that Islamabad is making all efforts to "...prevent Taliban from operating in areas under its sovereign control, including in the cities of Quetta and Chaman" before releasing any funds or approving licenses for enhancing its military capability.
The legislation, already endorsed by the US House of Representatives, is now being discussed in the Senate.
Musharraf said the US believes Al Qaeda leaders are making terrorist plans across the world from Pakistan.
"There is Al Qaeda in mountains. We have defeated them. We have expelled them from cities. They had been in Karachi, Rawalpindi, Faisalabad, Lahore. They were everywhere."
He said Pakistan has removed the Al Qaeda militants from its cities.
"They took shelter in mountains. We attacked them in mountains. They are still in mountains. We will deal with them, they can not live there."
Musharraf said foreign militants should not be allowed to be here. "We will have to take action against them."
Taliban is Afghanisthan's problem, he said adding, "We are suffering because of Afghanistan."
Pakistani officials acknowledge that anti-Pakistan feelings are strong in the United States because of "misperceptions" about the country's role in the war against terrorism.