The organization in question is the Rafi Peer Theater Workshop, a local group that jointly developed the show with Sesame Workshop, the creator of the American series.

Embassy spokesman Robert Raines said Tuesday the U.S. terminated funding but declined to provide details.

The Pakistan Today newspaper reported the cause was financial irregularities at Rafi Peer, citing unnamed sources close to the project. Rafi Peer denied the allegations, saying the U.S. ended its participation after providing $10 million because of lack of available funds. AP