US warns of sanctions as Pakistan inks deals with Iran

Islamabad: Islamabad and Tehran agreed to “expeditiously finalise” a free trade agreement (FTA) and hold the next sessions of business and trade bodies soon after the US cautioned Pakistan of the risk of sanctions for engaging in business deals with Iran.
Following Iranian Prez Ebrahim Raisi’s three-day visit to Pakistan, the two countries issued a joint statement stating that they reviewed the entire spectrum of bilateral relations. “They (Pakistan and Iran) reiterated the importance of cooperation in the energy domain, including trade in electricity, power transmission lines and Iran-Pakistan gas pipeline project,” a joint Iranian-Pakistani statement said, recalling their aim to increase the volume of bilateral trade to $10 billion over the next five years from the current $2 billion. “There was consensus to fully operationalise barter trade mechanisms between the two sides to facilitate economic and commercial activity.” The gas pipeline project has languished for more than a decade because of political turmoil and international sanctions.
The US state department warned Islamabad of the risk of sanctions. “We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions. But ultimately, govt of Pakistan can speak to their own foreign policy pursuits,” US state department spokesperson Vedant Patel said during a news briefing.
The implied threat of sanctions, observers said, comes at a difficult time for Pakistan, which is struggling economically and is looking to its allies for financial support, especially important allies like the US, Saudi Arabia, and United Arab Emirates, three nations that are seen as Iran’s adversaries.