US does not support gas pipeline project between Pakistan-Iran

The United States said it does not support the continuation of a gas pipeline project between Pakistan and Iran and warned about the risk of sanctions when doing business with Tehran
Reuters Tuesday, 26 March 2024

The United States said it does not support the continuation of a gas pipeline project between Pakistan and Iran and warned about the risk of sanctions when doing business with Tehran.

The Pakistan-Iran gas pipeline, known as the Peace Pipeline, is a long-term project between Tehran and Islamabad that has faced delays and funding issues for several years, and would transport natural gas from Iran to neighboring Pakistan.

"We always caution everyone that doing business with Iran carries the risk of encountering our sanctions, and we advise everyone to consider it very carefully," a spokesperson for the U.S. State Department told reporters at a press briefing.

Iran and Pakistan had signed a five-year trade plan in August 2023 and set a target for bilateral trade of $5 billion.

"We do not support the continuation of this pipeline," the U.S. spokesperson added, stating that Donald Lu, the top State Department official for Central and South Asia, had said the same thing last week before a congressional committee.

Meanwhile, Pakistan's Petroleum Minister, Musadik Malik, said this week that his country was seeking a waiver from U.S. sanctions for the pipeline from Iran.

A few weeks ago, Pakistan and Iran exchanged drone and missile attacks against militant bases in each other's territory.

Relations between Washington and Tehran have long been complicated, and the United States has imposed multiple rounds of sanctions on Iranian entities.