The US said on Tuesday it does not support a Pakistan-Iran gas pipeline project from going forward and cautioned about the risk of sanctions in doing business with Tehran.
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 in the Arabian Gulf to neighboring Pakistan and India.
Iran and Pakistan had signed a five-year trade plan in August 2023 and set a bilateral trade target at $5 billion.
Pakistan's Petroleum Minister Musadik Malik said this week that his country was seeking a US sanctions waiver for the gas pipeline from Iran, according to Reuters.
Earlier, the spokesperson for Pakistan's Foreign Ministry, Mumtaz Zahra Baloch, said that it is the sovereign decision of the Pakistani government to move forward on the project.
She said Pakistan has also conveyed to the US authorities the importance of this project for its energy security.
On Tuesday, State Department spokesperson Mathew Miller told reports, “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.”
He added, “The assistant secretary made clear last week, we do not support this pipeline going forward.”
Donald Lu, Assistant Secretary of State for South and Central Asia told the House Foreign Affairs committee last Wednesday in a hearing that importing gas from Iran would expose Pakistan to US sanctions.
A few weeks ago, Pakistan and Iran engaged in tit-for-tat strikes when they exchanged drone and missile strikes on militants 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.
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.
