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Pakistan's balancing act: Iran FTA vs US alliance

04 May '24
76 min read
Pakistan's balancing act: Iran FTA vs US alliance
Pakistan's balancing act: Iran FTA vs US alliance

Insights

  • Pakistan and Iran are discussing an FTA to boost trade, especially textiles.
  • This could benefit Pakistan by lowering energy prices through an Iran-Pakistan gas pipeline.
  • However, the US sanctions on Iran and potential US retaliation threaten the deal.
  • Pakistan is caught between economic benefits from Iran and its crucial relationship with the US.
Pakistan and Iran are discussing an FTA to boost trade, especially textiles. This could benefit Pakistan by lowering energy prices through an Iran-Pakistan gas pipeline. However, the US sanctions on Iran and potential US retaliation threaten the deal. Pakistan is caught between economic benefits from Iran and its crucial relationship with the US.

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