Introduction
Pakistan received Iran’s final warning over the delayed Pak-Iran gas pipeline. The project, which has been inactive since 2014, may become an international legal battle Pak-Iran gas pipeline.
Iran’s Final Notice
Pakistan’s pipeline delays annoy Iran. After Tehran informed Islamabad of no more delays, the International Court of Arbitration may hear the issue in September 2024.
Pakistan’s Response
Pakistan is considering numerous options. The government wants to settle the dispute with Iran out of court, and Petroleum Division authorities are resolving legal difficulties.
Background of the Project
Pakistan and Iran inked a French Gas Sales Purchase Agreement (GSPA) in 2009 to develop a gas pipeline. However, US sanctions have repeatedly delayed the project. Although a 2019 accord extended Pakistan’s deadline to March 2024, growth has been weak.
Legal Risks
If its section isn’t done by September 2024, Iran may sue Pakistan. The GSPA’s punishment might cost Pakistan $18 billion. Project success depends on ongoing talks.
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