And Iran has also stopped oil exports to a Pakistani oil refinery that can’t find a way around US banking restrictions.
It isn’t clear how much PIA owes Iran. Some news reports said $600,000 while others said $6 million.
The Press Trust of India quoted a PIA official as saying Pakistan has not paid any overflight fees for six months because it is strapped for cash. But it might be having a problem paying because of banking restrictions.
As for oil, the problem is with banking restrictions. Iran trusted India and gave it credit for seven months while it looked for some way around the US banking restrictions. But the Islamic Republic apparently doesn’t trust Pakistan. The Daily Times of Pakistan said Iran stopped crude oil deliveries to Pakistan Refinery Limited last November, a full year ago.
It said Iran stopped the deliveries when the refinery could not get around banking restrictions and open the letters of credit required to pay Iran. The refinery normally took 12,000 barrels a day of Iranian light crude.