US Threatens Pakistan with Sanctions Over Iran Trade

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a contributing editor to Regtechtimes, he is recognized for his insightful reporting and analysis on financial crimes, particularly in the realms of espionage and sanctions. Mayur's expertise extends globally, with a notable focus on the sanctions imposed by OFAC, as well as those from the US, UK, and Australia. He is also regular contributor on Geopolitical subjects and have been writing about China. He has authored seven books on financial crimes and compliance, solidifying his reputation as a thought leader in the industry. One of his significant contributions is designing India's first certification program in Anti-Money Laundering, highlighting his commitment to enhancing AML practices. His book on global sanctions further underscores his deep knowledge and influence in the field of regtech.

In a recent development, the United States issued a warning to Pakistan, highlighting the “potential risk of sanctions” if it proceeds with a trade deal with Iran. The warning came after Pakistan and Iran signed eight memoranda of understanding (MoUs) earlier in the day, aiming to enhance collaboration across various sectors. The MoU signing ceremony was witnessed by Pakistani Prime Minister Shehbaz Sharif and Iranian President Ebrahim Raisi.

US Concerns Over Proliferation Networks

During a press briefing, US State Department Principal Deputy Spokesperson, Vedant Patel, emphasized the US stance on imposing sanctions on entities involved in proliferation networks, especially those engaged in business dealings with Iran. Patel stated, “We’re going to continue to disrupt and take actions against proliferation networks and concerning weapons of mass destruction procurement activities wherever they may occur.”

Referring to the imposition of sanctions on suppliers to Pakistan’s Ballistic Missile Program, Patel reiterated the US commitment to counteracting proliferation activities. He warned, “We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions.”

Reasons Behind Pakistan Sanctions

Explaining the rationale behind the sanctions, Patel pointed out that the sanctioned entities were involved in proliferating weapons of mass destruction and the means of their delivery. These entities were based in China and Belarus. Patel elaborated, “These were entities based in the PRC [People’s Republic of China] and Belarus and that we have witnessed to have supplied equipment and other items to Pakistan’s ballistic missile program.”

Impact on Bilateral Relations

Patel’s warning comes in the aftermath of President Raisi’s visit to Pakistan and the signing of eight bilateral agreements between the two countries. These agreements cover various areas such as veterinary and animal health, judicial support in civil cases, and security matters. Patel cautioned that business deals with Iran could jeopardize the bilateral relations between Pakistan and the US due to Iran’s standing in the international community.

The Significance of President Raisi’s Visit

President Raisi’s three-day visit to Pakistan aimed to strengthen the ties between the two nations. Led by Prime Minister Shehbaz Sharif from the Pakistani side, the discussions during the visit underscored the shared vision of advancing political, economic, trade, and cultural ties between Pakistan and Iran.

Previous Sanctions

Last week, the US State Department designated four entities for their involvement in proliferating weapons of mass destruction and their means of delivery. These entities have supplied missile-applicable items to Pakistan’s ballistic missile program, including its long-range missile program.

Read More about previous sanctions:

Among the sanctioned entities, the Belarus-based Minsk Wheel Tractor Plant has worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program. Additionally, sanctions were imposed on three Chinese entities, including “Xi’an Longde Technology Development Company Limited,” “Tianjin Creative Source International Trade Co Ltd,” and “Granpect Company Limited.”

As Pakistan navigates its foreign policy pursuits, it faces a delicate balance between its economic and strategic interests while considering the implications of its trade relations, especially with countries under US sanctions like Iran. The recent warning from the US serves as a reminder of the complexities surrounding Pakistan’s international engagements and the need for careful navigation of its foreign policy.

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