Pakistan

The withdrawal of the Industrial and Commercial Bank of China's (ICBC) bid as a leading financier for Pakistan's part of the Iran-Pakistan (IP) pipeline will decisively delay the project yet again. As with ICBC, the threat of US financial sanctions against firms engaged in this project will deter private players from participating. Pakistan's best bet would be direct government loans from Iran and Russia. The US$1.2bn loan Pakistan requires will not be forthcoming, however. Iran will be struggling with the full economic impact of western sanctions against its nuclear programme. Russia also reaps limited benefits from its involvement.

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