Anti-WMD Proliferation Sanctions in Pakistan
On December 18, 2024, the U.S. State Department announced sanctions against three Pakistani companies and a government-owned entity pursuant to Executive Order 13382, "Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters," and the Weapons of Mass Destruction Trade Control Regulations (found at 31 C.F.R. 539 et seq.). The executive order, signed in 2005 by President Bush, was intended to address the proliferation of weapons of mass destruction (WMDs) by targeting members of WMD support networks. While this provision has been widely used to target Iranian and North Korean WMD supply chains, this is the first time the U.S. has applied WMD sanctions to entities in Pakistan, a country with whom the U.S. has important geopolitical and economic ties. The four sanctioned entities have been added to the list of Specially Designated Nationals maintained by the Office of Foreign Assets Control and are prohibited from transacting with U.S. persons directly or indirectly and have been cut off from the U.S. financial system.
This action serves as a reminder that sanctions determinations are not limited to OFAC. While OFAC is the primary agency charged with administering sanctions, most executive orders, including EO 13383, delegate sanction authority to both the State and Treasury Departments. And, while all sanctions designations reflect foreign policy choices, some are more crime-driven (e.g. Kingpin and other narcotics and corruption designations) while others tend more toward diplomatic concerns. What is notable about this action is that the United States does not have a general sanctions program against Pakistan, as it does against other countries of concern such as Iran, North Korea, Venezuela, and Russia, among others. Moreover, the U.S. maintains diplomatic and security ties with Pakistan as well as trade and economic relationships. The decision to sanction these entities—including a state-owned entity—and to focus on the Pakistani ballistic missile program is therefore unusual and may reflect the Biden Administration’s tilt toward India as well as a lack of understanding of Pakistan’s security concerns.
Coming just a month before the end of the Biden administration, this action likely presents a major policy decision for the incoming Trump administration. We will see whether the Trump Administration State Department, almost assuredly to be led by Senator Marco Rubio, continues these sanctions or changes path.
The Stated Bases for Sanctions:
- The National Development Complex (NDC), located in Islamabad, Pakistan, has worked to acquire items in furtherance of Pakistan’s long range ballistic missile program—including special vehicle chassis intended to be used as launch support equipment for ballistic missiles and missile testing equipment. The United States assesses NDC is responsible for Pakistan’s development of ballistic missiles, including the SHAHEEN-series ballistic missiles.
- Akhtar and Sons Private Limited, located in Karachi, Pakistan, has worked for NDC to supply a range of equipment to Pakistan’s long-range ballistic missile program.
- Affiliates International, located in Karachi, Pakistan, has facilitated procurements of missile-applicable items for NDC and others in support of Pakistan’s ballistic missile program.
- Rockside Enterprise, located in Karachi, Pakistan, has worked for NDC to supply a range of equipment to Pakistan’s long-range ballistic missile program.
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The foregoing is for informational purposes only. It is not intended as legal advice and no attorney-client relationship is formed by the provision of this information.