Pakistan has declared a ‘Force Majeure and Excusing Event’ to Iran, effectively suspending its responsibility to finalize the multi-billion-dollar Iran-Pakistan (IP) gas pipeline project due to external circumstances beyond Islamabad’s control. The announcement was made in written testimony by Dr. Musadik Malik, Minister of State for Petroleum, to the National Assembly. The primary impediment to the project is the existing US sanctions on Iran. Malik affirmed that the project would remain on hold until sanctions are lifted and that no timeline could be assigned for its completion under the current circumstances.
Potential Outcomes and Future Prospects
While Iran disputes the notice of force majeure and excusing event, any ensuing disagreement will likely be settled through international arbitration. The exact penalty, if any, will be decided by the arbitrators. On a recent visit to Islamabad, Iranian Foreign Minister Hossein Amir Abdollahian advocated for the project’s completion, highlighting the mutual benefits for both countries. Despite Pakistan’s commitment to the project, US sanctions on Iran have hindered the start of pipeline construction. The Pakistani government is engaging in diplomatic dialogue with the US, seeking an exemption for the project to address the country’s growing energy needs.
 gas pipeline project amid US sanctions on Iran. The project, a potential solution to the growing energy needs in Pakistan, now hangs in uncertainty.){kind=link}