Could Pakistan Face Sanctions Like Those Imposed on Iran or Russia?

Jul 22, 2025 | Economy

Pakistan faces low but real risk of major sanctions amid shifting global alliances and security concerns.

The question of whether Pakistan could face the same kind of sweeping sanctions as Iran or Russia is not just hypothetical. It relates to regional stability, nuclear diplomacy, and changing global alliances. Although the likelihood of Pakistan experiencing such penalties is currently low, it is not impossible. Global sanctions of this magnitude are usually imposed on countries that violate serious international norms and standards. For Pakistan, several risks are on that path.

Ambassador Asim Iftikhar Ahmad Speech at UN

Source: X/@PakistanUn_NY

Nuclear Weapons and International Scrutiny

Concerns over its nuclear ambitions essentially triggered sanctions against Iran. Pakistan, though not a signatory to the Non-Proliferation Treaty, has so far managed to keep its nuclear program under cautious control. The country has avoided the direct ire of global atomic watchdogs. Yet, if Pakistan were to escalate nuclear activities that are viewed as threatening to regional or global security, the response could be severe. This was highlighted in December 2024 when Washington imposed sanctions on four Pakistani entities for their alleged role in developing long-range missile systems. These missiles are capable of striking outside South Asia.

Pakistan firmly rejected the US allegations, describing them as one-sided and not reflective of its long-standing commitment to strategic stability. The government argued that its missile capability serves as a deterrent aimed at maintaining peace in the region, not as a provocation. But the United States remains concerned, citing the growing range of Pakistan’s missile technology and potential risks far beyond the subcontinent.

Counterterrorism Concerns and FATF

From 2018 to 2022, Pakistan was placed on the Financial Action Task Force’s grey list due to shortcomings in its counter-terrorist financing and anti-money laundering frameworks. The country implemented over 30 reforms during that period, ultimately earning its way off the grey list. However, any backsliding, whether real or perceived, could reignite concerns. If the global watchdog finds evidence of support for designated terror groups, harsher financial restrictions might follow. These would not be unprecedented. Sanctions in this category often start as targeted financial penalties and can expand to wider trade limitations.

Sanctions tied to human rights violations have become a hallmark of Western foreign policy. Crackdowns on civil liberties, media freedoms, or repression in areas like Balochistan could draw international attention. If such actions were judged to be systematic and state-driven, they could result in visa bans and asset freezes for specific individuals. Broader sanctions, such as those applied to Myanmar or Syria, are unlikely without major escalations, but the precedent exists.

Geopolitical Alignment and Military Ties

Countries that deepen defense or trade relations with heavily sanctioned states often face secondary sanctions. This is evident in the cases of Iran, North Korea, and Russia. If Pakistan were to significantly expand its defense cooperation with Moscow or Tehran, particularly in contravention of existing UN arms embargoes, it could find itself in the crosshairs of US legislation, such as CAATSA. While Pakistan has traditionally maintained strong ties with China and balanced its relations with both the West and its regional allies, the shifting global order may demand harder choices in the future.

Military tensions with India or involvement in Afghanistan could raise alarms among international observers. Any open conflict that threatens regional peace or violates UN mandates could serve as justification for the imposition of targeted sanctions. The current South Asian balance is fragile, and Pakistan’s diplomatic approach will play a crucial role in preventing conflict from escalating.

The Diplomatic Fallout

The recent US sanctions have sparked diplomatic strain. Washington’s decision to penalize Pakistan’s National Development Complex and three private firms has been seen by Islamabad as a break from decades of military and intelligence cooperation. Over the years, Pakistan supported US-led missions, especially during the Cold War and in the War on Terror. The new sanctions appear to discount that history.

The regional picture complicates things further. At the same time as the US restricted Pakistani entities, it eased curbs on Indian nuclear companies and deepened strategic ties with New Delhi. Beijing responded by imposing its restrictions on US entities. The fallout suggests that sanctions now operate as a tool within broader geopolitical rivalries.

Recent US sanctions over missile development signal growing international scrutiny of Pakistan’s defense posture.

Despite growing pressure, Pakistan still plays a key role in managing Afghan refugee flows, participating in climate diplomacy, and contributing to UN peacekeeping. Its geopolitical location, situated between China, Iran, and India, gives it leverage. The West is unlikely to isolate Pakistan entirely, not just for strategic reasons, but because dialogue and cooperation remain more effective than coercion.

But the stakes are growing. Pakistan must navigate a delicate balance between asserting its sovereignty and avoiding isolation. Transparency in missile development, continued reforms to counter terrorist financing, and a clear human rights record will strengthen its position.

Sanctions Around the World

It is worth noting that dozens of countries are currently under various types of sanctions. Russia, Iran, North Korea, Syria, and Cuba face sweeping restrictions that affect entire economies. Regions like Crimea, Donetsk, and Zaporizhia are under international sanctions due to ongoing conflict. The European Union and United Nations have imposed penalties on states, including Belarus and Myanmar, often citing human rights or chemical weapons violations. Even smaller countries, such as Guinea-Bissau and Haiti, are subject to targeted measures.

These cases show that sanctions are no longer rare diplomatic tools. They are widely used to enforce global norms. However, they are also politically charged. When imposed unevenly, as some critics argue is happening in South Asia, they can exacerbate rather than resolve conflicts.

Sustained global engagement and transparency remain key to avoiding isolation and protecting Pakistan’s strategic interests.

Pakistan is not currently at risk of facing sanctions on the scale of those imposed on Iran or Russia. However, its actions, particularly in areas such as missile development, human rights, and regional diplomacy, are under scrutiny. The most effective way to prevent punitive isolation is through consistent international engagement, strategic transparency, and adherence to global standards and best practices. The choices made now will shape not only Pakistan’s global standing but also the future security balance in South Asia.