WASHINGTON: The US said on Tuesday it does not support a Pakistan-Iran gas pipeline project from going forward and cautioned about the risk of sanctions in doing business with Tehran.
WHY IT IS IMPORTANT
The Pakistan-Iran gas pipeline, known as the Peace Pipeline, is a long-term project between Tehran and Islamabad, and has faced delays and funding challenges for several years. The pipeline would transport natural gas from Iran to neighboring Pakistan.
Iran and Pakistan had signed a five-year trade plan in August 2023 and set a bilateral trade target at $5 billion.
Pakistan’s Petroleum Minister Musadik Malik said this week that his country was seeking a US sanctions waiver for the gas pipeline from Iran.
KEY QUOTES
“We always advise everyone that doing business with Iran runs the risk of touching upon and coming in contact with our sanctions, and would advise everyone to consider that very carefully,” a US State Department spokesperson told reporters in a press briefing.
“We do not support this pipeline going forward,” the spokesperson added, saying that Donald Lu, the State Department’s top official for South and Central Asia, had said as much to a congressional panel last week.
CONTEXT
A few weeks ago, Pakistan and Iran engaged in tit-for-tat strikes when they exchanged drone and missile strikes on militant bases on each other’s territory.
Washington’s relations with Iran have been thorny for a long time and the US has issued multiple rounds of sanctions on Iranian entities.
Officially allies in fighting extremism, Pakistan and the US have had a complicated relationship over the years, bound by Washington’s dependence on Pakistan to supply its troops during its long war in Afghanistan but plagued by accusations Islamabad played a double game.
Some Pakistani politicians have also accused Washington of meddling in Pakistan’s domestic politics, charges that Washington denies.
US says it doesn’t support Pakistan-Iran gas pipeline project going forward
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US says it doesn’t support Pakistan-Iran gas pipeline project going forward
- US State Department cautions about the risk of sanctions in doing business with Tehran
- Pakistan-Iran gas pipeline has been facing delays and funding challenges for several years
Pakistan to press ahead with privatization after $441 million net loss in FY2024-25
- National Highway Authority and power distribution companies are major loss contributors
- The government says reforms agenda is shifting ‘from diagnosis to delivery’ after PIA sale
KARACHI: Pakistan is pressing ahead with plans to privatize state-owned enterprises (SOEs) after official data released on Friday showed the sector posted a net loss of PKR 122.9 billion ($441 million) in the year ended June 2025, with the government approving new transactions involving power utilities, an international airport and other major assets.
The Cabinet Committee on State-Owned Enterprises, chaired by Finance Minister Muhammad Aurangzeb, reviewed the Annual Consolidated Performance Report of SOEs for the fiscal year ended June 2025. The report was prepared by the Finance Division’s Central Monitoring Unit, which showed SOEs remain a significant drag on public finances.
“The Committee was informed that during FY 2024-25, aggregate revenues of SOEs stood at approximately PKR 12.4 trillion [$44.6 billion], reflecting a decline largely attributable to reduced profitability in the oil sector following lower international oil prices,” said an official statement circulated by the Finance Division.
“Aggregate profits of profit-making SOEs declined by 13 percent to PKR 709.9 billion [$2.55 billion] compared to PKR 820.7 billion [$2.95 billion in the preceding year], while aggregate losses of loss-making SOEs showed improvement, declining by around 2 percent to PKR 832.8 billion [$2.99 billion],” it added. “Despite this improvement, the net result was an overall net loss of PKR 122.9 billion [$441 million] for the SOE sector, compared to a net loss of PKR 30.6 billion [$110 million] in the previous year.”
It was highlighted that losses remain heavily concentrated in a small number of entities, particularly in the transport and power distribution sectors.
“National Highway Authority and several power distribution companies continued to be major loss contributors, reflecting structural issues, high depreciation, financing costs, and the public service nature of certain operations that are not commercially viable,” the statement said.
It added the cabinet committee directed that the findings of the report be shared with relevant ministries to inform reform measures and that progress on audits, governance reforms, debt rationalization and fiscal risk containment be reviewed regularly.
In a separate post on X, government finance adviser Khurram Schehzad said the SOE reform agenda was shifting “from diagnosis to delivery,” citing recent privatizations including First Women Bank, the shutdown of Utility Stores Corporation and progress on Pakistan International Airlines.
The Privatization Commission also held a meeting during the day, saying it would also move ahead with the privatization of power distribution companies while recommending that Islamabad International Airport be included in the privatization program under an open, competitive concession model.
It also decided to restart the sale process for House Building Finance Company Limited after terminating an earlier negotiated transaction that failed to meet valuation benchmarks.
Pakistan is implementing structural reforms under a $7-billion program agreed with the International Monetary Fund, which has urged Islamabad to rein in losses at state firms and reduce fiscal risks stemming from debt and guarantees.
