Khan, the chairman of Pakistan's opposition party Tehreek-e-Insaf, says aid money never reaches its target group as it lands in the hands of wealthy Pakistani government officials.
"DFID and others have played a big role for us, but the money has to be used honestly. The British Government and other donors must have a major say in the implementation of proposed projects. The money must be used for welfare projects rather than making billionaires even more rich," said Khan, as reported by the Sun on Sunday (19 October).
Khan's remarks followed a report that revealed that, despite millions of pounds being channeled towards governments, aid money has done nothing to help the economic and political freedom of the people.
The TaxPayers' Alliance report investigated 28 countries, where the aid was financed by British taxpayers and the results revealed that the funds did, "not have any discernible impact on freedom in developing countries."
Other interesting observations revealed that twice as many countries in fact, lost their freedom after receiving the British funds, rather than seeing an improvement in their political and human rights conditions.
Pakistan's Prime Minister Nawaz Sharif is often accused of channeling public funds towards his own business ventures in Pakistan.
Khan built on his allegations by saying:
"This is the most corrupt government we have ever had so whatever they get from donors they will try to distribute among their family members or favourites. We want more schools, hospitals, small businesses and employment opportunities. This government has to go if we want any change.
"Otherwise the money provided by the DFID and others will only help the rulers and never reach deserving people. They even bribe the media with this money."
A DFID spokesperson, however, calls Khan's allegations "unfounded" saying:
"Strict financial checks and close monitoring mean aid money only goes to those who need it. UK aid is changing Pakistan for the better — for example, 400,000 girls in the Khyber Pakhtunkwa region alone can now go to school because of it.
"Ultimately, this work is in Britain's interest. A thriving, stable Pakistan will help safeguard against terrorism and be a trading partner for the future."
Khan's claims put added pressure on David Cameron to rethink his commitment towards increasing the aid budget to 0.7 per cent of gross national income.
Last year alone, aid spending totaled £12 billion. The Prime Minister has given his personal vote to a LibDem-backed private member's bill to add 0.7 per cent target into law.
Pakistan is one of the biggest recipients of UK aid money, with an estimated £310million planned to be handed over to the country next year.