Islamabad to abide by sanctions on Iran

Islamabad:  Pakistan will abide by any US sanctions on Iran, which Washington has warned could hit Pakistani companies involved in a $7.6 billion (Dh28 billion) Iran-Pakistan gas pipeline deal, Prime Minister Yousuf Raza Gilani said on Monday.

Gilani's remarks came the day after the US Special Envoy for Afghanistan and Pakistan Richard Holbrooke warned Islamabad against becoming too committed to the project because of the expected sanctions' effects.

"If the US imposes sanctions, they will have international implications and Pakistan, as a member of the international community, will follow them," Gilani said at a press conference in the southern Sindh province.

The US Congress is finalising legislation tightening sanctions on Iran over its nuclear programme, which Washington believes is being used to develop weapons. Tehran denies the allegations.

Holbrooke urged Pakistan to wait and see the final legislation before moving ahead on the deal, signed in March.

Pakistan is desperate for new energy sources, saddled with expensive power generation and a daily shortage of as much as 5,000 megawatts.

Power outages

Frequent power outages hamper industry and have sparked street protests against President Asif Ali Zardari's government.

Washington has not criticised the gas pipeline project too loudly, forced to balance its need to back Pakistan against its goal of isolating Iran.

The UN Security Council imposed a fourth round of sanctions on Iran on June 9 over its nuclear programme, which Washington believes is being used to develop weapons.

Iran has always denied trying to develop a nuclear arsenal.

The pipeline, expected to be completed by 2015, originally would have terminated in India. However, New Delhi has been reluctant to join, given its rivalry with Pakistan.