Due to the postponement in laying down the gas pipeline, Pakistan is currently navigating a pivotal moment in its relationship with Iran which reportedly has issued a third notice, renewing its intention to move the arbitration court for not laying the pipeline as part of the IP gas line project. Pakistan-Iran gas pipeline project, which has been marred by delays since 2014, demands immediate attention and decisive action to avoid severe financial consequences. The delays in implementing the IP gas pipeline project are primarily attributed to the stringent US sanctions imposed on Iran. While Pakistan contends that these sanctions hindered its ability to proceed, it is essential to note that other nations, including India, Turkiye and Iraq, have managed to secure waivers and continue importing gas and petroleum products from Iran. In addition, the French arbitration court which has to decide disputes that arise between the two countries also does not recognize the US sanctions.
The urgency for Pakistan to address the IP gas pipeline project cannot be overstated. By taking immediate and tangible steps, such as laying down the 80-kilometer pipeline from Gwadar to the Iranian border, we cannot only avert a substantial financial penalty of eighteen billion dollars but also secure a vital energy source, addressing the country’s severe shortages that are affecting both domestic and commercial users. Importing gas from Iran not only serves as a cost-effective alternative for Pakistan but also ensures a reliable and consistent supply of gas.
This becomes crucial at a time when the country is grappling with energy shortages and the impact is being felt across various sectors. Implementing the IP gas pipeline project aligns with Pakistan’s economic interests, providing a viable solution to its current energy challenges. To navigate the geopolitical complexities surrounding the project, we must engage with Iranian authorities diplomatically. Strengthening relations with Iran is not only vital for the successful completion of the IP gas pipeline but also offers mutual benefits in diverse fields. This cooperation could extend beyond energy to encompass economic, cultural and geopolitical collaboration, fostering a more robust and enduring partnership. .
