US blacklists over 2 dozen firms tied to Pakistan and Iran weapons programs

The United States has imposed sanctions on more than two dozen companies, alleging their support for ballistic missile and drone development in Pakistan and Iran. The US Bureau of Industry and Security (BIS) announced last week that 26 companies from Pakistan, China, Egypt, and the United Arab Emirates were blacklisted due to activities deemed contrary to US national security, including violating export controls, aiding restricted weapons programs, and attempting to bypass sanctions on Russia and Iran.

The BIS, a division of the US Commerce Department, stated that “nine Pakistani entities were added [to the ban list] for acting as front companies for the Advanced Engineering Research Organization, listed in 2014, and seven others for contributing to Pakistan’s ballistic missile program.”

Three entities from the UAE and one from Egypt were also blacklisted for allegedly attempting to obtain restricted US parts after Russia’s invasion of Ukraine in 2022. Additionally, six Chinese firms were sanctioned for assisting China’s military and procuring US technology for Iran’s weapons of mass destruction (WMD) and unmanned aerial vehicle (UAV) programs.

According to Thea D. Rozman Kendler, assistant secretary of commerce for export administration at the BIS, the US will continue blocking entities “that attempt to bypass our controls and endanger US national security.”

“Programs such as Iran’s WMD program, their UAV program, and Pakistan’s ballistic missile program pose significant threats to the national security of the United States and will not be aided by US technologies,” Kendler added.

Matthew S. Axelrod, assistant secretary of commerce for export enforcement at the BIS, stated, “When we identify parties transshipping US items to support WMD and UAV programs in countries like Pakistan and Iran, or aiding Russia’s war efforts, we take action. Today’s listings also make clear that when foreign parties engage in dilatory or evasive conduct with respect to our end-use checks, they will face consequences.”

Other US sanctions

The US State Department in April 2024 acted against four entities involved in weapons of mass destruction proliferation. These entities were accused of supplying crucial materials and technologies to Pakistan’s ballistic missile program, including long-range missile capabilities.

The State Department noted that “three of the targeted companies are based in China, with the fourth in Belarus,” providing missile-related items to Pakistan’s program.

In response to US sanctions on entities allegedly linked to Pakistan’s ballistic missile program, Pakistan’s Foreign Ministry voiced concerns, with spokesperson Mumtaz Zahra Baloch noting that “similar listings have occurred before without any evidence being shared.” She suggested that Islamabad was open to transparency discussions to protect legitimate commercial ventures from being “unfairly impacted by export controls.”

Pakistan’s ballistic missile program is a key component of its national defense strategy, developed in response to regional security challenges and the country’s long-standing rivalry with India. As part of Pakistan’s strategic deterrence and conventional strike capabilities, its missile systems are designed to deliver both nuclear warheads and conventional munitions.

To manage these weapons, specifically their precision and security during missile operations, Pakistan has implemented a state-of-the-art command and control infrastructure. Additionally, a specialized security force, operating under the leadership of a three-star general, has been deployed exclusively to protect these strategic assets.

This security framework aims to prevent unauthorized access, safeguard the country’s defense assets, and ensure swift and effective response in any scenario.

The arsenal mainly consists of short- and medium-range ballistic missiles, with ongoing advancements in cruise missile capabilities.

Among Pakistan’s short- and medium-range missiles, the Shaheen-III has a range of approximately 1,710 miles, while the Ababeel can reach up to 1,400 miles.

Islamabad has consistently emphasized that its advancement in missile technology is to maintain a credible deterrent and achieve strategic balance in South Asia.

Dr. Maria Sultan, the Islamabad-based chair of the South Asian Strategic Stability Institute University and Pakistan’s leading defense and security analyst, told The Media Line: “Pakistan’s ballistic missile program is indigenous and not reliant on US technology, so the sanctions have minimal impact on its development.”

“Moreover,” she continued, “if any listed companies were trading with the US, it suggests there were compliance lapses on the US side.”

Sultan added that the “US has lost its role as the leader of the non-proliferation regime since it has been the sole facilitator of not only leading an arms race in South Asia but has contributed towards the defense industry development of India after STA-1.”

STA-1 or Strategic Trade Authorization-1, is a US designation that enables certain countries to access advanced and sensitive American technology, including dual-use items for both civilian and military purposes. In 2018, India became the first South Asian country to receive STA-1 status.

“In a faltering US Middle East policy, the creation of a false narrative surrounding sanctions against Pakistani and Iranian companies serves to deflect pressure and reflects an irresponsible unilateral approach to the Joint Comprehensive Plan of Action (JCPOA), which has been previously undermined by US sanctions on Iran,” Sultan explained.

The JCPOA is the 2015 agreement between Iran and six world powers—the US, UK, France, Russia, China, and Germany—to limit Iran’s nuclear program in exchange for sanctions relief.

“The timing and nature of these sanctions appear more aimed at appeasing a domestic audience rather than genuinely addressing missile proliferation,” she added, stressing that “this strategy ultimately detracts from the necessary efforts to control the proliferation of missiles.”

Umar Karim, a defense and security research fellow at the University of Birmingham, said the recent sanctions underscore Washington’s preference for India as a regional partner, given its rivalry with China. “The United States and Pakistan have been growing apart strategically, primarily due to their differing regional perspectives,” he told The Media Line.

Karim argued that Pakistan’s alliance with China and ties with organizations like the Shanghai Cooperation Organization (SCO) intensify tensions with the US. “The US sees China as a major competitor. … Given Pakistan’s strong alliance with China, it doesn’t fit well into any US grand strategy.” Instead, the US views India as a preferred partner, he said.

According to Karim, the sanctions “should be viewed within this wider geopolitical context” as “the US is signaling its dissatisfaction with Pakistan’s close ties to China.” He added that while the sanctions may not disrupt Pakistan’s missile program, they highlight “the enduring strategic divide” between the nations. He warned that “unless Pakistan lessens its strategic partnership with China ... the friction will continue, with the potential for further US sanctions targeting Pakistan’s security infrastructure.”

Muhammad Bilal Iftikhar Khan, a Lahore-based international relations and defense analyst, told The Media Line that “Pakistan’s missile program has now advanced to the point where frequent sanctions are unlikely to cause significant setbacks.” Pakistan’s advances in missile technology, he said, mean that external pressures have “diminishing effects” while the US faces growing challenges to its “rules-based order” as China and Russia assert themselves globally.

Pointing to the recent SCO summit in Islamabad, Khan described “the timing of fresh US sanctions, coinciding with the SCO summit,” as a sign of tensions between US interests and the shifting geopolitical landscape. He explained that “Pakistan’s nuclear and missile development has historically been driven by conflict with India,” while the US strengthens defense ties with India, positioning it as a counterbalance to China.

Khan concluded, “Pakistan has never posed a threat to the US or its allies and has often compromised its security to support US interests.” But as “India’s growing strategic importance” realigns US policy, he noted, the US is adjusting its strategy in South Asia.