As Pakistan looks to the International Monetary Fund (IMF) for another bailout, the US state department has imposed sanctions on multiple Chinese firms, for their supply to Pakistan’s ballistic missile programme, under the missile sanctions laws.
State Department spokesperson Matthew Miller informed in a press statement: “The Department of State is taking action on five Chinese companies and one individual that have been involved in the proliferation of ballistic missiles and controlled missile equipment and technology. Specifically, the Department of State is designating the Beijing Research Institute of Automation for Machine Building Industry (RIAMB) pursuant to Executive Order 13382, which targets proliferators of weapons of mass destruction and their means of delivery.”
The US has imposed sanctions on the Beijing Research Institute of Automation for Machine Building Industry (RIAMB), which has worked with Pakistan’s National Development Complex (NDC), under the missile sanctions laws (i.e. the Arms Export Control Act [AECA] and the Export Control Reform Act [ECRA]).
“Additionally, the United States is imposing sanctions under the missile sanctions laws (i.e., the Arms Export Control Act [AECA] and the Export Control Reform Act [ECRA]) on three PRC-based entities, one PRC individual, and a Pakistan entity for ballistic missile proliferation activities: PRC-based firms Hubei Huachangda Intelligent Equipment Company, Universal Enterprise Limited, and Xi’an Longde Technology Development Company Limited (aka Lontek); PRC individual Luo Dongmei (aka Steed Luo); and Pakistani-based entity Innovative Equipment,” the press statement read.
“The United States will continue to act against proliferation and associated procurement activities of concern, wherever they occur,” Mr Miller concluded.
This is not the first time the US has taken action against entities involved in supplying Pakistan’s ballistic missile programme. Previously four entities including Belarus based Minsk Wheel Tractor Plant and three Chinese entities were designated for their involvement in supplying missile applicable items to Pakistan’s long range ballistic programme.
In April this year Vendant Patel, Deputy spokesperson for the Department of State had warned that anyone considering business deals with Iran should be aware of the potential risk of sanctions.
Meanwhile the International Monetary Fund on Thursday said that its board will meet on September 25 to discuss the $7 billion Extended Fund Facility (EFF) to Pakistan. This will be the 24th bailout for the cash strapped nation. Pakistan’s external debt obligations exceed $130 billion. Earlier China, Saudi Arabia and UAE had agreed to roll over Pakistan’s 12 billion dollar debt, to next year. The Shebaz Sharif led government has been steadily increasing the taxes to manage the country’s debts, but these new sanctions and the harsh line the USA is taking will be another blow for the staggering nation.
-By Jyotirmay Kaushal