ISLAMABAD: Matthew Miller, the spokesperson for the US Department of State, said on Tuesday Washington would not advise any country, including Pakistan, of “considering business deals” with Iran, warning of “ramifications” such as sanctions.
The Pakistan-Iran gas pipeline, known as the Peace Pipeline, is a long-term project between Tehran and Islamabad, which has faced delays and funding challenges for over two decades. The pipeline would transport natural gas from Iran to neighboring Pakistan.
Pakistan said in March it would seek a US sanctions waiver for the pipeline, to which the US responded publicly, saying it did not support the project and cautioned about the risk of sanctions in doing business with Tehran.
Widespread media reports this week suggested Iran had slapped Pakistan with a final notice to finish its part of a cross-border gas pipeline or face international arbitration and possibly billions of dollars in fines.
“We will continue to enforce our sanctions against Iran. And as a matter of course, we also advise anyone considering business deals with Iran to be aware of the potential ramifications of those deals,” Matthew told reporters in response to a question about Pakistan’s push to complete the pipeline and seek a US sanctions waiver.
“At the same time, helping Pakistan address its energy shortage is a priority for the United States, and we continue to discuss energy security with the Government of Pakistan.”
The pipeline deal, signed in 2010, envisaged the supply of 750 million to a billion cubic feet per day of natural gas for 25 years from Iran’s South Pars gas field to Pakistan to meet its rising energy needs. The pipeline was to stretch over 1,900 kilometers (1,180 miles) — 1,150 km within Iran and 781 km within Pakistan.
Tehran says it has already invested $2 billion to construct the pipeline on its side of the border, making it ready to export. Pakistan, however, did not begin construction and shortly after the deal said the project was off the table for the time being, citing international sanctions on Iran as the reason.
Iran’s oil minister at the time responded by saying that Iran carried out its commitments and expected Pakistan to honor its own, adding that Pakistan needed to pick up the pace of work.
In 2014, Pakistan asked for a 10-year extension to build the pipeline, which expires in September this year. Iran can take Pakistan to international court and fine the country. Local media has reported Pakistan can be fined up to $18 billion for not holding up its half of the agreement.
Faced with a potential fine, Pakistan’s government earlier this year gave the go ahead in principle to commence plans to build an 80 km segment of the pipeline. In March, Pakistan announced it would seek the sanctions’ waiver.
Washington’s support is crucial for Pakistan as the country seeks approval from the IMF executive board for a 37-month $7 billion bailout program signed in July.
Pakistan, whose domestic and industrial users rely on natural gas for heating and energy needs, is in dire need for cheap gas with its own reserves dwindling fast and LNG deals making supplies expensive amidst already high inflation.
Iran has the world’s second-largest gas reserves after Russia, according to BP’s Statistical Review of World Energy, but sanctions by the West, political turmoil and construction delays have slowed its development as an exporter.
Originally, the Pakistan-Iran deal also involved extending the pipeline to India, but Delhi later dropped out of the project.
“I fully support the efforts by the US government to prevent this pipeline from happening,” US Assistant Secretary of State Donald Lu said as he gave testimony at a Congressional hearing earlier this year. “We are working toward that goal.”
US warns Pakistan of ‘ramifications’ of business deals with Iran amid gas pipeline dispute
https://arab.news/bzwuj
US warns Pakistan of ‘ramifications’ of business deals with Iran amid gas pipeline dispute
- Iran has slapped Pakistan with final notice to finish its part of cross-border gas pipeline or face international arbitration
- Pakistan said in March it would seek US sanctions waiver for the gas pipeline but Washington says it does not support the project
Pakistan’s JF-17 fighter jet draws ‘strong interest’ at Riyadh defense exhibition
- Jets showcased as Pakistan seeks to expand defense exports
- Interest in JF-17 has heightened after May 2025 conflict with India
ISLAMABAD: Pakistan’s JF-17 Thunder fighter jet has drawn “strong interest” at the World Defense Exhibition in Riyadh, Pakistan’s state broadcaster said on Sunday, as Islamabad promotes the aircraft to international buyers at one of the region’s largest defense industry events.
The exhibition brings together defense officials, manufacturers and military delegations from dozens of countries, offering a platform for arms exporters to showcase equipment and pursue new contracts amid heightened global and regional security concerns.
Saudi Arabia has sought to position Riyadh as a regional hub for defense and aerospace exhibitions, using such events to foster partnerships and attract international manufacturers as part of broader diversification efforts.
Last year Islamabad signed a mutual defense pact with Riyadh and is reportedly discussing another defense agreement involving Saudi Arabia and Turkiye, although details have not been made public.
“At the World Defense Exhibition in Riyadh, the Pakistan Air Force’s JF-17 Thunder has attracted strong interest from visitors and defense experts, standing out among fighter jets displayed by the US, Saudi Arabia and other countries,” state broadcaster Pakistan Television reported.
Islamabad is attending the exhibition in the backdrop of talks with at least 13 countries, six to eight of which are in an advanced stage, for deals involving JF-17 jets made jointly with China as well as training aircraft, drones, and weapons systems, according to recent media reports.
Interest in the JF-17 jets has been bolstered by its operational visibility following the Pakistan-India military confrontation in May 2025, which Pakistani officials and defense analysts have cited as reinforcing the aircraft’s combat credibility.
Islamabad has increasingly positioned the JF-17 as a cost-effective multirole combat aircraft for countries seeking alternatives to high-end Western fighter jets. The aircraft is already in service with several foreign air forces and remains central to Islamabad’s defense export strategy.
Countries engaged in talks include Sudan, Saudi Arabia, Indonesia, Morocco, Ethiopia, and Nigeria as well as the government in eastern Libya led by Khalifa Haftar. Discussions on JF-17s and other weapons with Bangladesh and Iraq have been publicly acknowledged by Pakistan’s military, although more details have not been made public.
Almost all the potential buyers are Muslim-majority nations, like Pakistan. Many are from the predominantly Muslim Middle East, where Pakistan has historically been a security provider.
Separately, Pakistan’s Defense Minister Khawaja Asif met his Saudi counterpart, Khalid bin Salman bin Abdulaziz Al Saud, at the sidelines of the event.
Asif congratulated the Saudi leadership and the defense minister on the “successful and splendid” organization of the World Defense Show, state broadcaster Radio Pakistan reported.
“He described this global defense event as an important milestone in promoting defense cooperation in the region,” Radio Pakistan said.
