Islamabad plans to request a waiver from Washington regarding the Iran-Pakistan gas pipeline project.
As Petroleum Minister Musadik Malik stated on Monday, “Pakistan intends to actively pursue an exemption from US sanctions by presenting both technical and political rationale,”
Earlier in February, the interim government resolved to finalize the pipeline within its borders in two stages, starting with constructing an 81km section from Gwadar, connecting to Iran’s already completed pipeline segment.
Iran has extended a 180-day completion deadline for Pakistan to September 2024. Failure to meet this deadline could lead Tehran to seek a $18 billion penalty through International Arbitration in Paris.
Malik also highlighted Pakistan’s plans to lobby for the US waiver, which is essential for the pipeline’s completion. He confirmed the imminent commencement of construction work on the project.
Previous caretakers refrained from applying for the waiver due to geopolitical considerations. A ministerial committee managed the project’s oversight.
The Biden administration aims to halt the pipeline’s construction, emphasizing its stance on Tehran’s nuclear activities to Islamabad. Assistant Secretary of State Donald Lu expressed this during a Congressional hearing, noting the potential impact on US-Pakistan relations if Islamabad partners with Iran.
The pipeline, a frequent topic at the Congressional hearing, has been delayed since 2014. Iran signalled arbitration actions due to Pakistan’s failure to proceed, citing US sanctions as the obstacle. However, Tehran disputes this, noting that Iraq and Turkey utilize Iranian gas under US waivers.
Iran had completed its 900-kilometre pipeline section under a 2009 agreement, originally set for a 2015 completion.
