– Iran has issued a final warning to Pakistan to complete its section of the Iran-Pakistan gas pipeline by the end of September or face international arbitration.
– The pipeline project was first agreed upon in the 1990s but has faced numerous delays. Iran has completed its portion but Pakistan has failed to finish its section due to US sanctions on Iran.
– Pakistan had requested a 10-year extension to finish the project until 2024, which is set to expire this month. Iran is now threatening international arbitration if Pakistan misses this deadline.
– The arbitration court could impose penalties of up to $18 billion on Pakistan if it loses the case, according to local media reports.
– Pakistan is in a difficult position as completing the pipeline could invite stronger US sanctions, but losing an arbitration case could severely hurt its struggling economy.
– The US sanctions on Iran have effectively disrupted the bilateral pipeline project, which is important for Pakistan’s growing energy needs as its own gas reserves are set to decline in over a decade.
Source: First Spot
