Washington is already discussing the issue with Islamabad: Victoria Nuland.—Reuters photo

WASHINGTON: The United States said on Tuesday that a gas pipeline project Pakistan was negotiating with Iran could violate US restrictions on major financial deals with Tehran and Washington was already discussing this issue with Islamabad. At a briefing at the State Department, spokesperson Victoria Nuland also said that a bill President Barack Obama signed into law on Saturday would not lead to an automatic suspension of US aid to Pakistan.

At a Dec 27 public rally in Larkana, President Asif Ali Zardari had said that Pakistan would go ahead with the gas pipeline agreement with Iran despite US reservations.

But the law President Obama signed on Saturday forbids dealing with central Iranian banks. Experts say that this restriction could make it difficult for Pakistan to implement the project.

When the question was raised at the State Department briefing, Ms Nuland said it was a cause of concern for the US as well.

“We’ve made absolutely clear over many months now our concern about this deal and we will continue to talk to Pakistan about it. Were it to go forward, how it might be impacted — again, this is the kind of conversation that we have to have with Pakistan and that we’re starting to have now,” she said.

Also, Ms Nuland indirectly confirmed a recent statement by a Pakistani official that Pakistan had not received anything from the coalition support fund since June 2010 and only $400 million from the Kerry-Lugar-Berman bill were received during 2011.

“You do know that some of the money on the military-to-military side, it was difficult to spend because some of those programmes had been suspended and because of the state of the relationship in counter-terrorism cooperation,” she said.

When a reporter reminded her that new congressional restrictions — included in the law President Obama signed during the weekend — could also adversely affect the US-Pakistan relationship, Ms Nuland said: “These are certification requirements in the bill. So obviously, we’re going to have to certify that cooperation is going well in order to release money. So it’s essentially a continuation of some of the issues that we’ve had before.”

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Desperate measures
Updated 27 Dec, 2024

Desperate measures

Sadly in Pakistan, street protests and sit-ins have become the only resort to catch the attention of a callous power elite.
Economic outlook
27 Dec, 2024

Economic outlook

THE post-pandemic years, marked by extreme volatility in the global oil and commodity markets as well as slowing...
Cricket and visas
27 Dec, 2024

Cricket and visas

PAKISTAN has asserted that delay in the announcement of the schedule of next year’s Champions Trophy will not...
Afghan strikes
Updated 26 Dec, 2024

Afghan strikes

The military option has been employed by the govt apparently to signal its unhappiness over the state of affairs with Afghanistan.
Revamping tax policy
26 Dec, 2024

Revamping tax policy

THE tax bureaucracy appears to have convinced the government that it can boost revenues simply by taking harsher...
Betraying women voters
26 Dec, 2024

Betraying women voters

THE ECP’s recent pledge to eliminate the gender gap among voters falls flat in the face of troubling revelations...