Pakistan signals cautious shift on Iran sanctions

Pakistan signalled a cautious change in its language on US sanctions against Iran on Thursday, saying it will adhere to “all applicable sanctions regimes” while reaffirming ties with Washington. Officials said the formulation broadens Islamabad’s previous emphasis on international law and bilateral trade commitments with Tehran.

FO wording expands compliance scope

Foreign Office spokesperson Sajjad Haider Khan said at the weekly briefing: "Pakistan is a responsible member of the international community and adheres, and shall continue to adhere, to all applicable sanctions regimes in accordance with international and domestic laws." Officials did not define which measures they consider "applicable," a distinction that separates legal obligation from practical effect.

The change matters for banks and companies that clear dollar payments or use correspondent accounts. Washington has warned that US secondary sanctions can limit foreign institutions’ access to the US financial system, and SWIFT has previously disconnected Iranian banks to comply with sanctions under jurisdictions to which it is subject. Officials said Pakistan’s reference to domestic law leaves regulators room to restrict Iran-related flows on grounds such as anti–money‑laundering and foreign‑exchange rules.

Watch for a formal statement or guidance from the State Bank of Pakistan by October 9, 2026, which could clarify whether regulators will tighten transaction screening for Iran-linked counterparties.