Pakistan acknowledges sanctions risk for Iran gas pipeline, rejects foreign ‘dictation’

In this file photograph, taken on April 22, 2024, commuters ride past a welcoming billboard displaying an image of the Iranian president Ebrahim Raisi along a street in Karachi. (AFP)
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Updated 08 May 2024
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Pakistan acknowledges sanctions risk for Iran gas pipeline, rejects foreign ‘dictation’

  • Ishaq Dar says Pakistan will prioritize its own interest over the issue as a sovereign state
  • The pipeline project has faced delays for several reasons including funding challenges

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar announced on Tuesday his country understood the sanctions risk involved in pursuing the Iran-Pakistan gas pipeline, though he said it would not take “dictation” from other states and follow its own interests.
Earlier this year in March, US Assistant Secretary of State for South and Central Asian Affairs Donald Lu told a Congressional hearing that President Joe Biden’s administration was trying to prevent the construction of the pipeline project that was agreed between the two countries in 2009.
His statement followed Pakistan’s decision to build an 80-kilometer pipeline segment from its border with Iran to the port city of Gwadar in the first phase.
Recent media reports also indicated the government was deliberating over engaging an international law firm to seek US sanctions waiver to implement the project.
“We are not concerned with what other countries say about the Iran-Pakistan gas pipeline project,” Dar said during a media talk in Islamabad. “We must prioritize our own interests, honor our commitments, and make decisions based on Pakistan’s interests.”
“We won’t be dictated to, nor will we allow anyone to veto our decisions,” he continued. “Pakistan is a sovereign nation, and we expect others to respect our sovereignty just as we respect theirs. The government will make the final decision on the IP gas pipeline.”
The deputy prime minister said the Iranian president visited Pakistan with sincerity, and the government conducted meetings and dialogues with him in a cordial environment.
“This project has long-standing complications, including sanctions from other countries, but we will prioritize Pakistan’s interests when making decisions about it,” he added.
The Iran-Pakistan gas pipeline, known as the Peace Pipeline, has faced significant delays in the past due to several reasons that include funding challenges.
Pakistan’s defense minister Khawaja Muhammad Asif also said last month his country had the right to buy gas at competitive rates from neighboring countries amid its ongoing economic problems.


Pakistan launches digital cash aid for low-income families during Ramadan, PM says

Updated 19 February 2026
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Pakistan launches digital cash aid for low-income families during Ramadan, PM says

  • Ramadan relief moves from state-run Utility Stores to targeted digital wallet transfers
  • Government to transfer financial assistance through wallets to support sehri, iftar expenses

ISLAMABAD: Pakistan will provide financial assistance to low-income households through digital wallets during the fasting month of Ramadan, Prime Minister Shehbaz Sharif said on Thursday, announcing a government relief initiative aimed at helping families afford daily meals.

The support program comes as many Pakistanis continue to face elevated food and utility costs despite easing inflation, with Ramadan traditionally increasing household spending on staple foods, fruits and energy consumption.

For decades, government-run Utility Stores Corporation outlets were central to Ramadan relief in Pakistan, selling subsidized flour, sugar, ghee and pulses through special “Ramzan packages” that drew long queues in low-income neighborhoods. In recent years, however, authorities have steadily scaled back the system amid mounting losses, corruption complaints and logistical inefficiencies, shifting instead toward targeted cash transfers delivered through digital wallets and banking channels. 

The change reflects a broader policy move away from state-managed commodity distribution toward direct financial assistance intended to give households flexibility while reducing leakages in subsidy programs.

“The Government of Pakistan has launched a Ramadan package under which financial assistance will be transferred to deserving individuals through digital wallets so that households can maintain sehri and iftar meals,” Sharif said in a message issued by his office.

The prime minister said Ramadan encourages compassion and collective responsibility toward vulnerable segments of society, adding that welfare support was part of the state’s duty during the holy month.

Officials say the digital cash transfers approach improves transparency and reduces corruption risks while enabling faster payments nationwide, particularly in urban low-income communities.

But the shift to fully digital assistance also brings challenges. 

Access to smartphones and reliable mobile Internet remains uneven, particularly in rural areas and among older recipients, while many low-income households use SIM cards registered to someone else, complicating verification.