ISLAMABAD: The US State Department announced this week it has imposed sanctions on three Chinese companies and one Belarus-based company for supplying items to Pakistan’s ballistic missile program. 

As per a press release, the State Department announced sanctions against China-based companies Xi’an Longde Technology Development Company Limited, Tianjin Creative Source International Trade Co. Ltd, Granpect Company Limited and the Belarus-based Minsk Wheel Tractor Plant. 

“These entities have supplied missile‐applicable items to Pakistan’s ballistic missile program, including its long-range missile program,” a press release issued late Friday stated. 

The State Department said Minsk Wheel Tractor Plant had worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program. 

“Such chassis are used as launch support equipment for ballistic missiles by Pakistan’s National Development Complex (NDC), which is responsible for the development of Missile Technology Control Regime Category (MTCR) I ballistic missiles,” it said. 

Washington alleged Xi’an Longde Technology Development Company Limited supplied missile-related equipment, including a filament winding machine, to Pakistan’s long-range ballistic missile program that was also destined for NDC. 

“Filament winding machines can be used to produce rocket motor cases,” the State Department said. 

It said the Tianjin Creative Source International Trade Co. Ltd. supplied missile-related equipment to Pakistan’s long-range ballistic missile program, including stir welding equipment. 

It said the company’s supplies were likely destined for Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which develops and produces Pakistan’s MTCR Category I ballistic missiles.

It further said Granpect Company Limited worked with SUPARCO to supply equipment for the testing of large-diameter rocket motors. 

“In addition, Granpect Co. Ltd. also worked to supply equipment for testing large-diameter rocket motors to Pakistan’s NDC,” it added. 

The sanctions mean all property and interests in property of the companies in the US or in possession or control of American citizens are blocked and must be reported to the US Treasury Department’s Office of Foreign Assets Control (OFAC), the State Department said. 

They also mean that all transactions by American citizens, or those within (or transiting) the US that involve any property or interests in property of the companies, are prohibited unless authorized by a general or specific license issued by OFAC or exempt.

Pakistan has so far not responded to the US State Department’s action. 

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb underlined the government’s resolve to carry out reforms in the energy and tax sectors in his meeting with a senior World Bank official this week, the finance ministry said on Saturday, as Islamabad grapples with an economic crisis amid surging inflation and low foreign exchange reserves. 

Reeling from a macroeconomic crisis, Pakistan has assured international financial institutions and bilateral partners it would take concrete measures to broaden its tax base, carry out reforms in the energy sector and overhaul loss-making state-owned enterprises (SOEs). 

Aurangzeb has been in Washington since last week to participate in spring meetings organized by the IMF and World Bank. His tour is an important one for the South Asian country as Pakistan’s ongoing nine-month, $3 billion loan program with the International Monetary Fund designed to tackle its balance-of-payments crisis, expires this month.

Aurangzeb met Martin Raiser, the World Bank’s regional vice president for South Asia, on Friday to discuss the government’s economic reforms. 

“Underlined the reform thrust of the government in the areas of energy, tax reforms and SOEs,” the finance ministry said. “Informed that government was pursuing short and long-term goals in these sectors.”

Aurangzeb said the World Bank’s focus on climate change, digitalization and human development aligns with Islamabad’s priorities, highlighting the government’s vision to realize the country’s true potential for economic growth. 

“Agreed on the need for reforms in the agriculture sector, water management and waste-water treatment,” the ministry said. 

Aurangzeb met World Bank’s President Ajay Banga on Tuesday during which he spoke about the government’s reforms in tax and energy sectors and highlighted Pakistan’s progress on privatization of government entities. 

In an interview on Monday, the Pakistani finance minister had said Islamabad would seek a fresh three-year IMF program, adding that the government plans to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.

In a separate statement, the finance ministry said Aurangzeb met China’s Finance Minister Lan Fo’an on Friday. During the exchange, the Pakistani finance chief thanked his Chinese counterpart for Beijing’s regular rollovers which helped plug Pakistan’s external financing gaps. 

“Informed that Pakistan was entering into a larger and extended program with IMF and looked forward to the support of China,” the ministry said, adding that he highlighted the government’s economic reforms in various sectors during his meeting with the Chinese official.