The United States has issued a cautionary statement concerning the recent trade agreements between Pakistan and Iran.
The Deputy Spokesperson of the US Department of State, Vedant Patel, underscored the potential risks of sanctions for countries entering into trade deals with Iran in light of the Iranian President’s visit to Pakistan, which led to the signing of several agreements.
During a press conference, responding to an inquiry, Patel advised entities considering trade agreements with Iran to remain conscious of the US sanctions framework. This statement came amid discussions of the significant agreements secured during the diplomatic visit.
When asked about Pakistan’s position on not requiring exemptions from US sanctions for the Iran gas pipeline project, Patel stated that the Pakistani government is best placed to comment on its foreign policy directions and achievements.
Patel explained that these sanctions were implemented against firms based in China and Belarus because of their involvement in the proliferation of weapons of mass destruction and their delivery systems. He noted these entities’ contributions to Pakistan’s ballistic missile program and reaffirmed the US commitment to continue targeting networks that facilitate the spread of such technologies.
Moreover, the Deputy Spokesperson highlighted an increase in Pakistan’s import reliance on Iran, particularly in the wake of the new government’s induction.
Official statistics indicated a 25% annual import increase from Iran during the first month of the new administration. Over the first nine months of the current fiscal year, imports from Iran rose 16%, with March 2024 imports amounting to $95.6 million compared to $76.4 million in March 2023 and $86.1 million in February 2024. From July to March, total imports from Iran were documented at $773 million, marking a notable uptick in trade activities between the two nations.
