Iran has extended the deadline for its gas pipeline project with Pakistan by 180 days, pushing the new deadline to September 2024. A warning accompanies this extension, stating that if the matter proceeds to International Arbitration in Paris, Iran will seek an $18 billion penalty from Pakistan.
Iran has proposed sending legal and technical teams to collaborate with Pakistan before the extended deadline expires. The primary goal is to find a mutually beneficial solution that would negate the need for arbitration. The teams, consisting of professionals with expertise in international relations, legislation, legal structure, and engineering, aim to ensure the successful completion of the gas pipeline project.
The Iranian team is set to visit Pakistan in the second week of February 2024. The collaborative effort is focused on devising a comprehensive strategy to revive the project, which has faced challenges.
Earlier notices from Iran had urged Pakistan to construct a segment of the Iran-Pakistan Gasline project on its territory by February-March 2024, threatening an $18 billion fine if this timeline was not met.
The core of the dispute lies in Pakistan attributing its inability to proceed with the project to US sanctions on Iran, a claim contested by Iran, which argues that the US restrictions are unjustified.
This extension and the collaborative initiative reflect a diplomatic effort by Iran to find a resolution and ensure the successful implementation of the gas pipeline project.
By offering an extended timeline and actively engaging in discussions, Iran demonstrates a willingness to work towards a solution that serves the interests of both nations, avoiding the potentially costly route of international arbitration. The outcome of these collaborative efforts will be crucial in determining the future trajectory of this significant energy infrastructure project.