The defence committee of Pakistan's lower house of parliament said in an unanimous resolution on Friday.
"Pakistan should curtail or completely stop its cooperation with the United States if the bill is enacted into a law," committee chief Chaudhary Shujaat Hussain told reporters.
The committee said Pakistan's contribution in the global "war on terror" launched after the September 11, 2001 attacks on the United States had been greater than any other country's.
If it becomes law, the condition "calls for a reciprocal action from Pakistan, including complete or partial non-cooperation in the war against terror," the defence committee of Pakistan's lower house of parliament said on Friday.
Joint session of parliament
The committee called for the two houses of parliament to hold a joint session and take necessary action if the US bill is passed, Hussain said.
The recommendation of the committee reflects strong resentment in Pakistani government circles over the proposed legislation, which has been repeatedly criticised by Pervez Musharraf, the Pakistani president and a key US ally.
Dick Cheney, the US vice president, paid a surprise visit to Islamabad last week to urge Musharraf to do more against Al-Qaeda and Taliban militants who he said were regrouping along the Afghan border.
Pakistan says it has captured more than 700 Al-Qaeda operatives who came into the country from neighbouring Afghanistan after US-led forces ousted the Taliban regime in late 2001.