US warns Pakistan of ramifications from Pakistan-Iran pipeline

September 04, 2024 (MLN): The United States has warned Pakistan of the potential ramifications of considering business deals with Iran.

US State Department spokesperson Matthew Miller during a press briefing on Tuesday while responding to a query about the Pak-Iran 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,” he added.

At the same time, he said, "helping Pakistan address its energy shortage is a priority for the United States, and we continue to discuss energy security with the Government of Pakistan."

Earlier in March this year, Pakistan and Iran initiated the construction of the multi-billion dollar oil and gas pipeline, spanning 800 kilometers from the Iranian border to Pakistan’s port city of Gwadar.

In August, the CEO of Turkmenistan–Afghanistan–Pakistan–India (TAPI) said the gas pipeline project has made significant progress and is on the right track due to the interest of Pakistan's Ministry of Petroleum and the Special Investment Facilitation Council.

Pakistan had been reluctant to work on the pipeline for several years as investors avoided backing the project due to United Nations sanctions against Iran as well as restrictions on dollar transactions.

The two countries signed a 25-year gas deal in 2013, giving Iran reason to threaten a battle in international courts, as Bloomberg reported.

The project is of immense strategic importance for the region as it has the potential to bring many direct and indirect social, economic, political, and environmental benefits.

It is crucial to note that the government is currently focusing on piped gas supply as it is necessary to meet the country's rising energy needs.

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