Govt forms high-powered body to break deadlock over Iran-Pakistan gas pipeline amid penalty threats

Islamabad, Pakistan - The government has established a high-level committee to resolve the longstanding deadlock surrounding the Pakistan-Iran gas pipeline project, amid threats of multi-million dollar penalties. Petroleum Minister Ali Pervaiz Malik stated that Prime Minister Shehbaz Sharif had formed the committee to assess the project's legal, financial, and energy aspects, and to recommend a course of action in Pakistan's best interest.

The committee will examine the potential liability facing Pakistan, the implications of litigation, and the nation's energy requirements.

Senator Talha Mahmood raised concerns about the project's two-decade delay, noting that Iran had completed its section of the pipeline near the Pakistani border. He asked about Pakistan's readiness to receive Iranian gas following the lifting of sanctions, the progress made on Pakistan's side of the pipeline, and the time required to make the pipeline operational post-sanctions.

The dispute over the pipeline has resulted in a formal notice from Iran seeking damages for the delay, which could total billions of dollars. This lawsuit is currently being heard by an international arbitration tribunal in Paris. The committee will weigh these factors in determining the pipeline's future.

Malik assured that the government sought to avoid additional complications from litigation and was pursuing a negotiated settlement with Tehran. He mentioned that Iran had already made substantial progress on its side of the pipeline, having delivered gas to a major city near the border. The minister also addressed concerns over gas supply in Balochistan, stating that the prime minister had directed the formation of another high-level committee to address the province's gas-related issues.