The Government of Pakistan has informed the United States that it will not fully normalize economic ties with the Iranian regime until international sanctions are removed.
Islamabad has also expressed its inability to open Iran’s Melli Bank branches and return Iranian deposits, Pakistani news media reported.
The decision was conveyed to the US Treasury through a letter written by the finance ministry, hours before Pakistan and Iran were set to engage in negotiations to resolve outstanding commercial and economic issues, according to the top Pakistani officials.
The same message has been told to the Iranian regime’s Minister for Economic Affairs and Finance, Ali Taieb Nia, who is currently in Pakistan, on Monday.
According to the reports, Finance Minister Ishaq Dar also told the Iranian minister that there would not be any progress on the gas pipeline project until international restrictions were removed.
Dar said the government could not return the $216 million to Tehran that the Iranian government had deposited in KASB Bank.
Pakistan has offered to supply wheat and rice in return for the deposits, the official said.
The Pakistani government has said it would not be able to allow the opening of Melli Bank branches as the bank was on the US list of entities that were facing sanctions, officials told The Express Tribune.