Pakistan and Iran may revive long-stalled gas and oil pipeline projects following the start of peace talks between Iran and the United States in Islamabad.
The Iran-Pakistan gas pipeline project was originally signed in 2009 during the Pakistan Peoples Party government, while the project was formally inaugurated in 2013 by then Iranian president Mahmoud Ahmadinejad and former Pakistani president Asif Ali Zardari. Plans for an oil pipeline and a major refinery in Gwadar were also discussed but later stalled due to US sanctions on Tehran.
Market hopes have strengthened after reports that Washington and Tehran are engaged in negotiations, raising expectations that sanctions could eventually be eased. Analysts say any relaxation in restrictions could reopen the possibility of resuming work on the long-delayed Iran-Pakistan pipeline.
Energy experts say the project has gained renewed relevance after recent disruptions in the Middle East highlighted the risks to global oil and gas routes, especially through the Strait of Hormuz. A direct pipeline link from Iran could provide Pakistan with a more secure supply route and reduce vulnerability to maritime disruptions.
Pakistan currently meets around 85 percent of its oil needs through imports and also depends on liquefied natural gas from Qatar to bridge domestic shortages. Recent regional tensions disrupted energy flows, further strengthening the case for overland pipeline options.
Iran has already completed its side of the pipeline, while construction on Pakistan’s section has yet to begin. Officials say Tehran remains willing to extend the gas sale agreement, though Pakistan has previously cited sanctions and weak domestic demand as major obstacles.