US says it doesn't support Iran-Pakistan gas pipeline project going forward
Business
State Department says doing business with Iran runs the risk of touching upon US sanctions
- Musadik Malik had earlier said Islamabad was seeking a waiver from Washington for the project
WASHINGTON (Reuters/Web Desk) – The United States said on Tuesday it does not support a Iran-Pakistan gas pipeline project from going forward and cautioned about the risk of sanctions in doing business with Tehran.
WHY IT IS IMPORTANT
The Pakistan-Iran gas pipeline, known as the Peace Pipeline is a long-term project between Tehran and Islamabad, and has faced delays and funding challenges for several years. The pipeline would transport natural gas from Iran to neighbouring Pakistan.
Iran and Pakistan had signed a five-year trade plan in August 2023 and set a bilateral trade target at $5 billion.
Petroleum Minister Musadik Malik said this week that his country was seeking a US sanctions waiver for the gas pipeline from Iran.
KEY QUOTES
"We always advise everyone that doing business with Iran runs the risk of touching upon and coming in contact with our sanctions, and would advise everyone to consider that very carefully," a US State Department spokesperson told reporters in a press briefing.
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"We do not support this pipeline going forward," the spokesperson added, saying that Donald Lu, the State Department's top official for South and Central Asia, had said as much to a congressional panel last week.
CONTEXT
A few weeks ago, Pakistan and Iran engaged in tit-for-tat strikes when they exchanged drone and missile strikes on militant bases on each other's territory.
Washington's relations with Iran have been thorny for a long time and the US has issued multiple rounds of sanctions on Iranian entities.
Officially allies in fighting extremism, Pakistan and the US have had a complicated relationship over the years, bound by Washington's dependence on Pakistan to supply its troops during its long war in Afghanistan but plagued by accusations Islamabad played a double game.
Some Pakistani politicians have also accused Washington of meddling in Pakistan's domestic politics, charges that Washington denies.
CHANGED TONE
Musadik, who earlier promised to start constructing the much-delayed project and argue Pakistan’s case with the US, on Tuesday had a different take, saying buying gas from Iran could trigger five-year sanctions.
“We have talked to Iran. We will find a way out so that we can get gas from Iran and also avoid the [US] sanctions,” he said.
