The Public Accounts Committee (PAC) was informed on Wednesday that Pakistan faces an $18 billion fee for failing to complete the Pakistan-Iran gas pipeline project by the contract deadline.
The National Assembly’s (NA) Public Accounts Committee (PAC) committee, presided by Noor Alam Khan, examined the non-use of Rs332 billion in gas infrastructure development cess.
Bargees Tahir urged that progress be made on publicly sponsored projects, stating that only Rs2 billion of the Rs325 billion received had been spent.
Syed Hussain Tariq informed the committee that neither the projects nor the funds are progressing. He warned Pakistan may face fines if the Iranian gas pipeline project wasn’t completed on time.
When the Petroleum Division was given Rs2.8 billion, the Secretary of Petroleum questioned how Rs325 billion had become available. The secretary further noted that the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project presents safety and security issues.
He also disclosed that Pakistan had contacted the United States for assistance with the Iran gas pipeline project. However, he stressed that Pakistan could not obtain Iranian gas due to an import prohibition. Throughout the preceding three to four months, he noted, there had been a substantial number of contacts with Russia.
According to Mohsin Aziz, it was regretful that none of the three projects for which the fee had been collected had advanced.
Members of the committee wished to know how severe a penalty Pakistan may suffer for delaying the construction of the Iran gas pipeline.
According to the agreement, the petroleum secretary said the penalty might be up to $18 billion.
In addition, he stated that they had requested the US ambassador’s clearance to move through with the project or a monetary donation to cover the fine.
The chairman then instructed the Ministry of Foreign Affairs to contact the American envoy and convey the gravity of the situation. He also reaffirmed the two options mentioned by the secretary of petroleum.
 was informed on Wednesday that Pakistan faces an $18 billion fee for failing to complete the Iran-Pakistan gas pipeline project by the contract deadlin){kind=link}