US threatens to impose sanctions for signing new agreements with Iran

The United States has once again threatened Pakistan with imposing sanctions for signing new agreements with Iran.

During a press briefing in Washington on Wednesday, Deputy Spokesman for the US State Department Vedant Patel said Pakistan may face sanctions if it promotes business agreements with Iran.

He added those making agreements should be aware of sanctions, urging Pakistan to view relations with Iran as per its foreign policy.

On the other hand, hours after the Iranian head of state departed from Karachi, the Foreign Office released a joint statement, stating details regarding the bilateral agreements, including plans pertaining to the Pak-Iran gas pipeline project, set forth by both nations.

The FO’s statement comes a day after the US State Department warned against the “potential risk of sanctions” in light of the business deals between both nations.

Pakistan and Iran, as per the statement, agreed to expeditiously finalise the free trade agreement (FTA) and boost their bilateral trade to $10 billion over the next five years through joint economic projects, setting up of joint border markets, economic free zones, and new border openings

Earlier, US State Department spokesperson Matthew Miller responding to a question on the visit of Iran President Ebrahim Raisi said that the United States is one of Pakistan’s largest export markets.

However, he advised “caution to those considering trade deals with Iran,” citing the potential threat of sanctions.

“We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions.”

The spokesperson did not specifically name Pakistan but reminded it of the US significance as the biggest foreign market and one of the biggest investors in the country.

“We have also been a leading investor in Pakistan for the past 20 years. Pakistan’s economic success is in both of our interests, and we look forward to continuing our partnership,” he added.