Iran agreed to restart the Iran-Pakistan pipeline project with Pakistan. Tehran and Islamabad now plan to revive the long-delayed cross-border energy scheme. Both countries are preparing a phased plan to resume construction.
The project faced years of delay due to sanctions, financing hurdles and regional constraints.
The issue has gained urgency for Pakistan. Pakistan faces a deadline to lay the pipeline on its territory.
A possible $18 billion penalty if Pakistan misses the deadline. Officials said the project aims to strengthen energy links between the two countries.
They also said it could improve supply security and support wider economic ties. Iranian gas could restore about 2,232 megawatts of thermal power capacity in Pakistan.
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The project could help Pakistan cut energy import costs. The pipeline may also help Pakistan diversify long-term fuel supplies.
Regional partners, including China, have shown interest in the project they could fund the pipeline’s infrastructure.
Further technical talks are expected in the coming weeks. Both sides will discuss implementation plans and funding mechanisms.
