Iranian President Ebrahim Raisi’s visit to Pakistan marks a step towards mending ties between the two nations after military strikes earlier this year. The visit has also drawn attention to the potential risks of sanctions from the United States, which has cautioned Pakistan against expanding its dealings with Iran. During Raisi’s three-day trip, Pakistan and Iran agreed to increase bilateral trade to $10 billion annually over the next five years, a significant increase from the current $2 billion. The countries also announced plans to collaborate in the energy sector, including trade in electricity, power transmission lines, and the Iran-Pakistan gas pipeline project. The gas pipeline project has faced delays for over a decade due to political turmoil and international sanctions. The United States Department of State has expressed concern over Pakistan’s engagement with Iran, emphasizing the potential risks of sanctions. However, Pakistan’s foreign office maintains that the two sides have agreed to explore alternative solutions for expanding bilateral trade, such as barter systems and border markets involving local chambers of commerce. Pakistan’s relationship with Iran and the US is a delicate balancing act. Pakistan is facing economic challenges and is seeking financial assistance from allies, including the US, Saudi Arabia, and the United Arab Emirates, who are considered rivals of Iran. Experts suggest that Pakistan should prioritize trade and energy cooperation with Iran while mitigating the risks of sanctions. Pakistan’s ability to use its limited leverage to navigate its relationships with both countries will play a crucial role in shaping the future of the Pakistan-Iran relationship.
US Warns Pakistan of Sanctions Risk Over Iran Cooperation
