Pakistan has agreed to resume work on a long-delayed gas pipeline project with Iran to avoid a potential multi-billion-dollar fine, according to a report published by Profit Magazine on Tuesday.
Iran (IMNA) – Islamabad has pledged to "finalize" the initial phase of the 80-kilometer pipeline on Pakistani territory. The Petroleum Division is seeking cabinet approval to initiate the project, while the Gas Infrastructure Development Cess board has been instructed to expedite financing.
To prevent a potential legal dispute and preserve diplomatic relations, Iran has extended the project deadline by 180 days until September 2024. The extension aims to prevent Iran from seeking legal recourse to protect its interests.
The project, launched in 2013, required Pakistan to complete the pipeline by 2014. However, construction stalled, prompting Iran to invest $2 billion in its portion of the pipeline. Pakistan faces an 18-billion-dollar fine if it terminates the gas pipeline agreement.
The United States has voiced its opposition to a pipeline project, stating that it could breach the illegal sanctions imposed on Tehran by Washington and its allies.
Source: Imna