‘Political use of export controls’ tests Pak-US ties

FO reacts after US sanctions target Pakistan’s missiles programme

ISLAMABAD:

In a move that jolted efforts to reset ties between the two countries, the United States on Friday imposed sanctions on four international companies -- three Chinese and one from Belarus -- accusing them of supplying equipment for Pakistan’s ballistic missile program.

Islamabad was quick to reject the move, saying that “political use of export controls” would only lead to an arms race and disturb strategic balance.

The US Department of State designated four entities pursuant to Section 1(a)(ii) of Executive Order 13382, which targets proliferators of weapons of mass destruction and their means of delivery.  

“These entities have supplied missile‐applicable items to Pakistan’s ballistic missile program, including its long-range missile program,” read the official statement issued in Washington.

The State Department issued a “fact sheet” while justifying the listing of four entities. It alleged that the Belarus-based Minsk Wheel Tractor Plant worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program.

“Such chassis are used as launch support equipment for ballistic missiles by Pakistan’s National Development Complex (NDC), which is responsible for the development of Missile Technology Control Regime Category (MTCR) I ballistic missiles,” it noted.

The statement department release further said People’s Republic of China (PRC)-based Xi’an Longde Technology Development Company Limited, supplied missile-related equipment, including a filament winding machine, to Pakistan’s long-range ballistic missile programme that we assess was destined for NDC. Filament winding machines can be used to produce rocket motor cases.

Similarly, China-based Tianjin Creative Source International Trade Co Ltd supplied missile-related equipment to Pakistan’s long-range ballistic missile program, including stir welding equipment (which the United States assesses can be used to manufacture propellant tanks used in space launch vehicles), and a linear accelerator system (which the United States assesses can be used in the inspection of solid rocket motors).

Tianjin Creative’s procurements were likely destined for Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which develops and produces Pakistan’s MTCR Category I ballistic missiles.

Another Chinese-based Granpect Company Limited, the US claimed,  worked with Pakistan’s SUPARCO to supply equipment for testing of large-diameter rocket motors. In addition, Granpect Co. Ltd. also worked to supply equipment for testing large-diameter rocket motors to Pakistan’s NDC, it alleged.

“As a result of today’s action, and in accordance with E.O. 13382, all property and interests in property of the designated persons described above that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC),” according to the statement department.

“Additionally, all individuals or entities that have ownership, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt.”

Reacting to the development, the Foreign Office rejected the US decision, saying such listings of commercial entities had taken place in the past as well on allegations of links to Pakistan's ballistic missile programme without sharing any evidence whatsoever.

“While we are not aware of the specifics of the latest measures by the United States, in the past we have come across many instances where listings have been made on mere suspicion or even when the involved items were not on any control lists but were deemed sensitive under catch-all provisions,” said Mumtaz Zahra Baloch, the foreign ministry spokesperson.

She said Pakistan rejected the political use of export controls. “It is a reality that the same jurisdictions, which claim to exercise strict non-proliferation controls, have waived off licensing requirements for advanced military technologies for some countries. This is leading to arms buildup; accentuating regional asymmetries, and undermining the objectives of non-proliferation and of regional and global peace and security,” the spokesperson warned.

“We have pointed out many times the need to avoid arbitrary application of export controls and for discussions between concerned parties for an objective mechanism to avoid erroneous sanctions on technology needed purely for socio-economic development pursuits. Pakistan has been ready to discuss end-use and end-user verification mechanisms so that legitimate commercial users are not hurt by discriminatory application of export controls.”

She further noted: “We reject political use of export controls. It is well known that the same jurisdictions, that claim strict adherence to non-proliferation controls, have waived off licensing requirements for advanced military technologies for some countries. Such discriminatory approaches and double standards are undermining the credibility of non-proliferation regimes and also the objectives of regional and global peace and security by accentuating military asymmetries.”

This is not the first time the US imposed sanctions on Chinese firms on allegations of helping Pakistan’s missile program. In October 2023, the US banned 3 Chinese firms on similar allegations while in December 2021 another Chinese company faced sanctions.

Observers believe that the US has maintained double standards when it comes to non-proliferation efforts. Interestingly, the latest US move came two days after US Ambassador to Islamabad Donald Blome told Pakistani Foreign Minister Ishaq Dar that Pakistan’s “security and prosperity” was the US top priority.

Defense experts feel that it is not possible for Pakistan to compromise on its strategic missile program and other arsenals at a time when the US has developed close strategic ties with India and is building its defense capabilities.