Pakistan may face tough sanctions over gas pipeline with Iran

US officials have termed the developments in the Iran-Pakistan (IP) pipeline project as violation of US restrictions over Iran. The US wants Iran to halt its nuclear programme, with talks currently under way to try to break the impasse. If Pakistan continues with the IP pipeline project, it could face tough US economic sanctions.

According to Senator Robert Menendez, Chairman of the Senate Foreign Relations Committee, “If Pakistan moves forward with the pipeline, it will be in clear violation of our Iran sanctions regime.”

According to the Under Secretary of State for Political Affairs, Wendy Sherman, the Obama Administration is having discussions in this regard with Pakistan. Sherman told members of the Senate Foreign Relations Committee, “On Pakistan, we have had those discussions [on Iran-Pakistan gas pipeline] and will continue with the Pakistani Government. My own assessment is it’s not going anywhere anytime soon.”

Sherman added that Pakistan “certainly understand where we are and what our sanctions require should it proceed.”

Pakistan’s resistance

The US has been opposing the IP pipeline project from the beginning. However, Pakistan has been defying US pressure, insisting that the pipeline is vital in relieving energy shortages in Pakistan.

Pakistan’s Prime Minister, Nawaz Sharif, said “Pakistan needs gas very badly…there is an acute shortage of gas in Pakistan, so we have to import gas from somewhere.” The Prime Minister also added that, in Islamabad’s legal opinion, the pipeline would not trigger sanctions.

Last week Sharif said that his country will proceed with the natural gas pipeline deal with Iran that was agreed to by the previous Pakistani Government, despite objections from the US.

The Iran-Pakistan pipeline

The IP gas pipeline will export 21.5 million m³d of Iranian natural gas to Pakistan.

The pipe is already completed on the Iranian side, but Pakistan needs to find US$ 1.5 billion to build the rest.

Edited from various sources by Hannah Priestley-Eaton

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