Iran has extended the timeframe for its gas pipeline project with Pakistan by 180 days, to September 2024. Iran has warned its neighbour that if the matter proceeds to arbitration, it will petition the Paris-based International Arbitration Court and demand a $18 billion penalty from Pakistan.
Demand $18 billion penalty
Tehran has offered to send legal and technical experts to Pakistan to work on a win-win solution before the 180-day timeframe passes. According to local media, the technical teams’ goal will be to complete the project while avoiding arbitration.
The Iranian team will go to Pakistan during the second week of February 2024. Both sides would design a viable plan to bring the project back to life.
The Iranian team would comprise experts in international relations, legislation, legal structures, and engineering.
Iran-Pakistan Gasline Project
Iran previously requested in its second notice in November-December 2022 that Pakistan build a part of the Iran-Pakistan Gasline project on its territory by February-March 2024 or suffer a $18 billion fine.
Prior to that, Tehran informed Islamabad in February 2019 that it will pursue arbitration for failing to install the pipeline within the term provided in the pipeline project.
Pakistan has claimed that it is unable to work on the project due to US sanctions against Iran, a position that Tehran has never accepted, alleging that the US restrictions are unjustified.
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