Pakistan’s Petroleum Minister Musadik Malik has said that Islamabad intended to approach Washington seeking a waiver for the Iran-Pakistan gas pipeline project. “Pakistan will vigorously present its case and seek exemption from US sanctions through both technical and political arguments,” Malik stated during an informal media discussion.
Earlier this year, the caretaker government decided to proceed with the project in two phases, with plans to initially lay a 81-kilometer section of the pipeline from Gwadar. Iran has extended the deadline for completion until September 2024, but failure to meet this deadline could result in Tehran seeking an $18 billion penalty through arbitration in Paris.
Malik also mentioned Pakistan’s intention to lobby for a US waiver to advance the long-delayed gas pipeline project within its territory. Despite previous hesitations due to geopolitical concerns, a ministerial oversight committee made decisions regarding the project.
The Biden administration has expressed its opposition to the Iran-Pakistan gas pipeline project and has warned Pakistan about cooperating with Tehran, particularly regarding nuclear proliferation issues. Assistant Secretary of State Donald Lu emphasized the seriousness of Pakistan’s engagement with Iran and its potential impact on US-Pakistan relations.
The project, initially planned for completion in 2015, has faced numerous delays. Iran has already completed a significant portion of the pipeline, while Pakistan attributes its delay to US sanctions against Iran, a stance disputed by Iranian authorities.
Iraq and Turkey have managed to use Iranian gas despite US sanctions, highlighting Pakistan’s desire for similar waivers. The agreement for the project was signed in 2009, with an original completion date of 2015.
