Deals with banned Iranian companies: business houses could invite US wrath: ministry

Ministry of Foreign Affairs has reportedly warned Pakistani business houses that they may face US wrath in case of doing business with banned Iranian companies, well informed sources in Securities and Exchange Commission of Pakistan told Business Recorder.
The sources said US government has requested that Pakistan should implement US bilateral sanctions against Iran. The US embassy has also shared information with the Ministry of Foreign Affairs. "These sanctions are non-binding and Pakistan is not under any obligation to comply. However, our business entities may have to face the opportunity cost for doing business with banned Iranian companies, as in such case, they may have to find it difficult to do business with any US company," the sources quoted Ministry of Foreign Affair'' letter.
The advisory issued to the private sector indicates that the country''s banks will not open any letter of credit for Pakistani companies for doing business with Iranian companies due to fear of sanctions. On February 29, 2012, Secretary of State Hillary Clinton had warned that Pakistan could face American sanctions if it continues with its proposed pipeline project with Tehran. In March another official had stated Pakistan, India and China and nine other countries that import crude oil from Iran may be hit with US sanctions.
Minister for Petroleum and Natural Resources, Dr Asim Hussain, in an interview with Business Recorder stated that Iran Pakistan (IP) Gas Pipeline project will be implemented as the United States is determined to block the IP project. He is determined to start implementation of the project and he will personally start its execution.
In reply to a question, he said US had never communicated with him with respect to opposition to the IP project. A consortium comprising Industrial and Commercial Bank of China (ICBC) and Habib Bank Limited (HBL) has already backed out of the IP project.