Iran has extended the deadline for its gas pipeline project with Pakistan by 180 days to September 2024. Iran has warned its neighbor that it will petition the Paris-based International Arbitration and demand an $18 billion penalty from Pakistan if the case goes to arbitration.
Tehran has volunteered to send its legal and technical teams to Pakistan to collaborate on a win-win approach before the 180-day deadline expires. The technical teams will aim to ensure that the project is completed and arbitration is avoided, local media reported today.
The team from Iran will travel to Pakistan in the second week of February 2024. Both parties would devise a viable strategy for bringing the project back to life. The Iranian team would include professionals in international relations, legislation, legal structure, and engineering.
Iran previously requested Pakistan in its second notice in November-December 2022 to build a segment of the Iran-Pakistan Gasline project on its territory by February-March 2024 or face a $18 billion fine. Before that, Tehran notified Islamabad in February 2019 that it would seek arbitration for failing to install the pipeline within the timeframe specified in the pipeline project.
Pakistan has maintained its stance that it is unable to work on the project due to US sanctions on Iran, a position to which Tehran has never subscribed, claiming that the US restrictions are unjustified.
