WASHINGTON: The US has reaffirmed its demand that Pakistan abide by its UN Security Council commitments to deny safe havens to terrorists and block their access to funds as it welcomed Islamabad's decision to release the captured Indian Air Force pilot.

In a surprise announcement during a joint session of Parliament, Pakistan Prime Minister Imran Khan said that Wing Commander Abhinandan Varthaman will be released on Friday as a gesture of peace.

Pakistan detained Varthaman Wednesday following a fierce engagement between air forces of the two sides along the Line of Control when his MiG 21 fighter jet was downed.

"We welcome Pakistani Prime Minister Imran Khan's commitment that Pakistan will release on Friday the Indian pilot held in its custody," a State Department spokesperson told reporters responding to a question on the announcement made by Khan in the Pakistani parliament.

Simultaneously, the US has urged both India and Pakistan to take immediate steps to de-escalate tensions.