Sep 5, 2024, 5:16 PM
Sep 5, 2024, 5:16 PM

Iran warns Pakistan on gas pipeline deadline amid sanctions

Highlights
  • Pakistan's Petroleum Minister acknowledged that international sanctions are complicating the Iran-Pakistan gas pipeline project.
  • Despite Iran's warning of an $18 billion penalty for delays, Pakistan disputes this figure and seeks to resolve issues through consultations.
  • The project is crucial for addressing Pakistan's energy shortages, but ongoing sanctions from the U.S. pose significant challenges.
Story

The Iran-Pakistan gas pipeline project has faced significant challenges due to international sanctions, complicating its progress. Pakistan's Petroleum Minister, Musadik Malik, acknowledged these complications and indicated that the country is seeking an exemption from U.S. sanctions to facilitate the project. Despite Iran's warning of an $18 billion penalty for delays, Malik disputed the figure and emphasized the need for friendly consultations to resolve issues with Iran. Pakistan's Foreign Ministry has noted the importance of the pipeline, which is crucial for addressing the country's energy shortages. The project, originally intended to include India, was reduced to a bilateral agreement after India's withdrawal in 2008. A 25-year contract was signed in 2009, with Iran completing its section while Pakistan has yet to finalize its part. The U.S. has maintained a firm stance on enforcing sanctions against Iran, complicating Pakistan's efforts to proceed with the pipeline. Recent sanctions on companies supplying missile-related equipment to Pakistan serve as a warning against moving forward with the project. Despite this, Pakistan's leadership has expressed determination to continue the pipeline's development without succumbing to external pressures. As the deadline for completion approaches, Pakistan's government is under pressure to resolve the situation. The ongoing gas shortages in the country highlight the urgency of the project, and officials are committed to finding a way to advance it while navigating the complex landscape of international relations and sanctions.

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