Pakistan and Iran are set to revive their collaboration on the gas pipeline project, with formal contacts set to begin within the next few weeks.
Iran has extended a deadline to Pakistan, allowing time until September 2024 to fulfill the project requirements. Failure to meet this deadline might prompt Iran to seek international arbitration due to a potential breach of contract.
Senator Muhammad Abdul Qadir, Chair of the Senate’s Standing Committee on Petroleum, confirmed the forthcoming formal discussions, expected to kick off within two to three weeks.
While the Iranian segment of the pipeline stands completed, delays persist in Pakistan’s section, primarily due to apprehensions regarding possible US sanctions against Iran.
Addressing concerns over project delays, Energy Minister Muhammad Ali announced the initiation of work on the Pakistan-Iran gas pipeline back in September. The country has experienced a 20% decrease in natural gas compared to the previous year. The government aims to mitigate gas load-shedding during winter, yet the minister highlighted challenges in providing gas at lower rates while buying it at higher prices.