US Warns Pakistan; Business With Iran Can Lead to Sanctions

The United States State Department issued a warning on Tuesday regarding the “potential risk of sanctions” arising from business deals between Pakistan and Iran following Iranian President Seyyed Ebrahim Raisi’s official visit to Pakistan.

In a statement, a State Department spokesperson emphasized the importance of being mindful of potential sanctions for anyone considering business dealings with Iran, without explicitly mentioning Pakistan. The spokesperson highlighted the strong economic ties between the US and Pakistan, underscoring the US’s role as Pakistan’s largest export market and a significant investor.

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

While acknowledging the economic partnership between the two countries, the spokesperson hinted at the possibility of strained relations between Pakistan and the US due to Islamabad’s growing closeness with Tehran, particularly in light of President Raisi’s visit and the bilateral agreements signed between Pakistan and Iran.

Read: Pakistan and Iran to Boost Bilateral Ties, Target $10 Billion Trade Volume

The statement from the State Department comes at a critical juncture in Pakistan’s history as it seeks to strengthen its ties with Iran while navigating potential repercussions from the US. The warning also follows Iran’s heightened global standing due to its regional activities and recent clashes with Israel.

During President Raisi’s visit, both countries signed eight agreements aimed at enhancing cooperation in various fields, including trade, science, technology, agriculture, health, culture, and judicial matters. President Raisi announced a mutual agreement to increase the trade volume between Pakistan and Iran to $10 billion during a joint press conference with Pakistani Prime Minister Shehbaz.