Pakistan says will abide by U.S. sanctions on Iran

ISLAMABAD (Reuters) - Pakistan will abide by any U.S. sanctions on Iran, which Washington has warned could hit Pakistani companies involved in a $7.6 billion Iran-Pakistan gas pipeline deal, the prime minister said on Monday.

Prime Minister Yusuf Raza Gilani's remarks came the day after U.S. Special Envoy for Afghanistan and Pakistan Richard Holbrooke warned Islamabad against becoming too committed to the project because of the expected sanctions' effects.

"If the U.S. imposes sanctions, they will have international implications and Pakistan as a member of the international community will follow them," he told reporters at a press conference in the southern Sindh province.

The U.S. Congress is finalizing legislation tightening sanctions on Iran over its nuclear program, which Washington believes is being used to develop weapons. Tehran denies that.

Holbrooke urged Pakistan to wait and see the final legislation before moving ahead on the deal, signed in March.

Pakistan is desperate for new energy sources, saddled with expensive power generation and a daily shortage of as much as 5,000 megawatts. Frequent power outages hamper industry and have sparked street protests against President Asif Ali Zardari's government.

Washington has not criticized the gas pipeline project too loudly, forced to balance its need to back Pakistan, a crucial ally in the global war against al Qaeda, against its goal of isolating Iran.

The U.N. Security Council imposed a fourth round of sanctions on Iran on June 9 over its nuclear program, which Washington believes is being used to develop weapons. Iran denies trying to develop a nuclear arsenal.

The pipeline, expected to be completed by 2015, originally would have terminated in India. However, New Delhi has been reluctant to join given its long-running rivalry with Pakistan.

(Writing by Bryson Hull, editing by Miral Fahmy)