- Pakistan’s delegation will hold talks in Tehran today.
- After the deadline, Islamabad will have to pay a fine of $18 billion.
- Advisors say that American sanctions will not have any impact on Pakistan’s economy.
ISLAMABAD: Pakistan on Tuesday will ask Iran to relax the February-March 2024 deadline to avoid $18 billion fine for not laying a pipeline through its territory. news informed of.
Iran last year asked Pakistan to construct a part of the Iran-Pakistan (IP) gas line project on its territory by February-March 2024 or face a fine of $18 billion.
Pakistan was to lay a 781 km long pipeline from the Iranian border to Nawabshah and start consuming 750 million cubic feet of gas per day. Tehran has already laid a pipeline from a gas field to the border with Pakistan.
“Pakistan’s delegation will hold talks with Iranian authorities in Tehran today (November 14, 2023) and request them not to go to international arbitration demanding imposition of a penalty of $18 billion. Energy Minister Mohammad Ali can reach Tehran today (Tuesday) but it will depend on the approval of the PM office. However, the concerned officials have reached Tehran. The energy minister returned from Kyrgyzstan today (Monday),” senior energy ministry officials said. news.
“Pakistan will also sensitize Iranian authorities on its attempt to implement the IP gas line through a third party to evade US sanctions imposed against Iran for its nuclear ambitions. The government will also seek to know about the impact of the sanctions. have also contacted the relevant US departments. They have not responded citing a lengthy process to analyze the impact. French advisers believe that US sanctions will have a negative impact on Pakistan’s economy, officials said. There will be no effect.
Pakistan’s Inter-State Gas System (ISGS) and National Iranian Gas Company (NIGC) signed an amended agreement in September 2019 for the pipeline. Under this agreement, Iran will not approach any international court for any delay until 2024. After this, Iran will be free to go to France-based international arbitration and seek a fine of $18 billion.
Officials said Iranian authorities will be made aware of Pakistan’s efforts to restructure the IP gas pipeline project to avoid US sanctions.
“Under the new option, Pakistan can buy gas not directly from Iran but through a third party. Iranian officials are also on the board of the proposal.
Since Pakistan cannot tolerate US sanctions, it is implementing this project very carefully.