Iran demands Pakistan Gas pipeline in 6-month or pay $18 billion fine

TEHRAN: In a positive development, Iran has granted Pakistan a 180-day extension for the completion of their gas pipeline project, easing tensions between the two nations. The deadline has been extended to September 2024, providing both countries with additional time to resolve outstanding issues.

Iran’s decision comes with a proactive approach, as it has offered to dispatch legal and technical teams to Pakistan to work collaboratively on finding a mutually beneficial solution before the extended deadline expires. This move reflects Iran’s commitment to avoiding arbitration and fostering cooperation with its neighbor.

The technical teams, comprised of experts in international relations, legislation, legal structure, and engineering, are scheduled to visit Pakistan in the second week of February 2024. Their objective is to devise a viable strategy to revive the stalled project and ensure its timely completion.

This extension follows previous notices from Iran, wherein it warned of potential arbitration and a hefty $18 billion penalty if the project was not completed within the specified timeframe. Despite these warnings, Iran has now opted for a diplomatic approach, emphasizing dialogue and cooperation.

Read more: On January 29, the foreign minister of Iran is scheduled to visit Pakistan

Pakistan, facing challenges due to US sanctions on Iran, has consistently cited these restrictions as a barrier to project implementation. However, Iran has maintained that the US sanctions are unjustified, and both countries are now working towards finding a solution that addresses these concerns.

With both nations committed to resolving their differences and revitalizing the gas pipeline project, there is renewed optimism for the future of bilateral relations. The collaborative efforts between Iran and Pakistan signal a positive step towards regional stability and energy cooperation, benefiting both countries and their citizens.