The United States has warned Pakistan of the potential ramifications of considering business deals with Iran.
US State Department spokesperson Matthew Miller in response to a query about the Iran-Pak gas pipeline project said, “So what I’ll say is that we will continue to enforce our sanctions against Iran. And as a matter of course, we also advise anyone considering business deals with Iran to be aware of the potential ramifications of those deals.”
Spotlight: Iran-Pakistan gas pipeline and some key facts
Faced with a potential fine of up to $18 billion for not holding up its half of the agreement with Iran, Pakistan’s Ministry of Energy started work on the project this April.
The authorities concerned started working to materialise 80-km pipeline from Gwadar to a point where it will get connected with the pipeline in Iranian territory.
The Iran-Pak Gas Pipeline Project was estimated to be completed in 24 months at Rs44 billion and it would transport natural gas from Iran to Pakistan.
Despite Pakistan’s assertion that the project could not move ahead due to US sanctions on Iran, Tehran has consistently maintained that these sanctions are unjustified. Tehran issued a final notice to Pakistan in January this year for completion of its pipeline portion by February-March 2024, or face an $18 billion penalty under the Gas Sales Purchase Agreement (GSPA) penalty clause for the 781-kilometer project.
The official emphasised the urgency of laying the 80-kilometer pipeline section to avoid arbitration in France, which could result in Pakistan being liable for the aforementioned penalty.
While Washington has repeatedly warned against the pipeline, the State Dept official said helping Pakistan address its energy shortage was a priority for the United States, and “we continue to discuss energy security with the Government of Pakistan”.
US stands shoulder to shoulder with Pakistan
Moreover, Miller strongly condemned the recent terrorist attacks in Balochistan, which resulted in the deaths of over 50 people.
“The Pakistani people have suffered greatly at the hands of violent extremist terrorists and our hearts go out to the families and loved ones of those killed,” he said.
“The United States and Pakistan have a shared interest in combating threats to regional security, and we will continue to stand shoulder to shoulder with Pakistan in its fight against terrorism.”
His statement comes after at least 73 people were killed in Balochistan when terrorists attacked police stations, railway lines, and highways, and security forces launched retaliatory operations.
As per the digital database of security incidents managed by the Pak Institute for Peace Studies (PIPS) – an Islamabad-based think tank, Balochistan experienced 28 terrorist incidents during August 2024, which resulted in 57 deaths and injuries to another 84 people.
Following the uptick of terrorist attacks, President Asif Ali Zardari stressed upon taking of all possible steps to improve security situation in Balochistan and called for effective measures for the complete elimination of terrorists.