US warns Pak of damaging consequences on Iran gas deal

The US on Thursday warned Pakistan of "damaging consequences" if it went ahead with the ambitious Iran-Pak gas pipeline, which would be against the global sanctions against Iran. "We believe that actually beginning the construction of such a pipeline either as an Iranian project or as a joint project would violate our Iran sanctions law," Secretary of State Hillary Clinton told lawmakers at a Congressional hearing. "So, you know, we all know what the consequences of that are, and it would be particularly damaging to Pakistan because their economy is already quite shaky," she said. The top diplomat said the additional pressure on Pakistan that "the United States would be compelled to apply would further undermine their economic status". The Secretary of State was responding to a question from Congressman Jerry Lewis on US response to Pakistan's insistence that it would go ahead with the Iran gas pipeline project. She made it clear that as the US was "ratcheting up pressure on Iran, it seems somewhat inexplicable that Pakistan would be trying to negotiate a pipeline." Hillary said the US recognizes that Pakistan has significant energy requirements, and for the last three years Washington has been working to help them upgrade their existing energy infrastructure, to look at potential new sources of energy.