Iran has granted an extension of 180 days for the completion of its gas pipeline project with Pakistan, pushing the deadline to September 2024. However, Tehran has issued a stern warning, cautioning Pakistan about potential consequences if the project is not finalized within this timeframe.
As per media reports, if the project reaches the stage of arbitration, Iran has explicitly stated its intention to approach the Paris-based International Arbitration and seek an $18 billion penalty from Pakistan. To foster cooperation and avoid legal proceedings, Iran has proposed sending its legal and technical teams to Pakistan for collaborative discussions before the extended deadline.
Scheduled to visit in the second week of February 2024, the Iranian teams will encompass professionals well-versed in international relations, legislation, legal structures, and engineering. The objective is to formulate a mutually beneficial strategy that ensures the successful completion of the gas pipeline project, thereby bypassing the need for arbitration.
This extension follows Iran’s prior notice in November-December 2022, urging Pakistan to construct a segment of the Iran-Pakistan Gasline project on its territory by February-March 2024 or face the aforementioned $18 billion fine. Tehran had initially informed Islamabad of its intent to seek arbitration in February 2019, citing the failure to adhere to the specified timeframe for the pipeline project.
Pakistan has consistently cited US sanctions on Iran as the impediment preventing progress on the project. In contrast, Iran has rejected this stance, asserting that the US restrictions are unjustified. As the situation unfolds, both nations are now presented with an opportunity to collaborate and devise a comprehensive strategy during the extended deadline to bring the gas pipeline project to fruition.
