US Warns Pakistan of Sanctions Risk for Doing Business with Iran | Politics News

Iran’s President Ebrahim Raisi visited Pakistan this week in an effort to mend ties between the two neighboring countries after a series of tit-for-tat military strikes earlier this year. The visit, the first by an Iranian president in eight years, concluded with promises of increased bilateral trade and cooperation in the energy sector.

During the three-day trip, Raisi and Pakistani officials agreed to boost bilateral trade to $10 billion a year over the next five years, a significant increase from the current $2 billion. They also discussed cooperation in the energy sector, including the long-delayed Iran-Pakistan gas pipeline project.

However, the United States has warned Pakistan of the risk of sanctions if it engages in business deals with Iran. The US Department of State cautioned that any expansion of formal trade with Iran could lead to sanctions, as Pakistani banks are hesitant to do direct business with Iranian banks.

Despite the threats of sanctions, Pakistan indicated that it will seek a waiver from the US to proceed with the gas pipeline project, which aims to meet Pakistan’s rising energy needs. The project has faced delays due to political turmoil and international sanctions.

Experts believe that Pakistan must carefully navigate its relationships with both Iran and the US to maintain its national interests. With economic woes and a need for financial assistance from allies like Saudi Arabia and the US, Pakistan must balance its ties with Iran while avoiding getting caught in the middle of the US-Iran conflict.

The future of the Pakistan-Iran relationship hinges on Pakistan’s ability to use its limited leverage and make strategic decisions that benefit its national interests. As tensions between the US and Iran continue, Pakistan must carefully navigate its relationships to ensure stability and economic growth.