Pakistan Forms Committee to Resolve Iran Gas Pipeline Standoff Amid Penalty Risks

In a bid to address the longstanding impasse over the Pakistan-Iran gas pipeline, the government has established a high-powered committee tasked with navigating the complexities of this critical energy project. With potential penalties reaching millions of dollars, the urgency for a resolution is palpable amidst Pakistan's increasing energy demands.

Petroleum Minister Ali Pervaiz Malik revealed the committee's formation during a Senate session, underscoring Prime Minister Shehbaz Sharif's directive for a solution that aligns with Pakistan's national interests. The committee will assess the legal, financial, and energy dimensions of the project, which has been stalled for two decades.

Senator Talha Mahmood raised pivotal questions regarding the project, including Pakistan's readiness to receive Iranian gas once sanctions are lifted and the status of construction on its segment of the pipeline. The Gas Sales Purchase Agreement, signed in 2009, mandated Pakistan to complete its 781 km pipeline by December 2014, a deadline that has since lapsed due to US sanctions and funding issues.

As the situation escalates, Iran has formally sought damages for the delays, with claims potentially amounting to billions. The matter is currently under review by an international arbitration tribunal in Paris. Minister Malik emphasized the government's desire to avoid litigation, aiming for a negotiated settlement, while also addressing gas supply challenges in Balochistan.

Source: www.dawn.com