ISIS had appointed Pakistan-born Khan as the emir of its Khorasan unit, the group's branch in Afghanistan and Pakistan.
In a statement, the US Treasury Department said that Khan plays a central role in expanding ISIS' operations in the region, commanding militants and coordinating the delivery of supplies and munitions, the travel of associates and other arrangements.
In mid-2015, Khan appointed ISIS representatives in Kunar Province and Nangarhar Province, Afghanistan and approved funding for the establishment of a training camp for ISIS fighters in western Afghanistan.
Khan in early 2015 claimed ISIS was responsible for the April 18, 2015 suicide attacks in Jalalabad City, Nangarhar Province which killed approximately 33 people.
Khan formerly served as a senior commander in Tehrik-e Taliban Pakistan.
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