Pakistan has sought a fresh 10-year extension until 2035 from Iran for starting the Iran–Pakistan (IP) gas pipeline as it faces a potential $18 billion penalty in international arbitration due to US sanctions on Tehran.
The federal government is currently contesting arbitration proceedings initiated by Iran before the Paris-based Court of Arbitration under French law.
It is also pursuing diplomatic efforts to reach an out-of-court settlement, reported a news daily.
A Ministerial Oversight Committee (MoC) under Deputy Prime Minister Ishaq Dar is reviewing legal and diplomatic options to limit Pakistan’s financial exposure.
Iran launched arbitration proceedings in September 2024, alleging that Pakistan failed to construct its section of the pipeline despite multiple deadline extensions. Tehran is seeking damages of $18 billion under the Gas Sales Purchase Agreement (GSPA).
Pakistan’s legal position maintains that international sanctions on Iran made it impossible to execute the project within the extended 180-day deadline.
The arbitration court’s decision will likely come in 2027–28. However, parallel diplomatic engagement is underway to negotiate a settlement outside the legal process.
The Federal Minister for Petroleum and Natural Resources has confirmed that the MoC is examining multiple options, with legal proceedings continuing but no diplomatic breakthrough achieved so far.
Basically pak army is saying
1. Iran Don’t supply oil to India
2. Ignore Pakistani army supporting Israel and USA against Iran
3. Withdraw any cases against Pakistan in international courts
It is duplication news, Pakistan has no courage to mention the reality.
renewables are much cheaper than gas