Pakistan has finally decided to move forward with a long-delayed gas pipeline project in two stages. The project will begin with the laying of 81 kilometers of pipeline from Gwadar, where Iran has already completed its part. This section will later be connected to Nawabshah. The plan has been approved by the Special Investment Facilitation Council (SIFC). Initially, the focus will be on laying the 81-kilometer section, with the connection to Nawabshah to follow later.
To proceed with the project, the Petroleum Division will seek approval from the federal cabinet, while funds will be arranged by the finance ministry through the Gas Infrastructure Development Cess (GIDC) board.
The primary goal of the initial 81-kilometer pipeline is to supply gas to Gwadar from the IP gas line project. Iran has granted Pakistan an extension until September 2024 to respond to the project’s requirements. Failure to comply may result in Iran initiating international arbitration and seeking an $18 billion penalty. However, Iran has expressed willingness to collaborate with Pakistan to find a resolution before the deadline.
Despite previous tensions, both countries are now working together to address the project’s challenges. Under the guidance of the SIFC, the Petroleum Division will coordinate with the Ministry of Foreign Affairs to facilitate a visit by an Iranian delegation to Pakistan. Together, they will devise a viable plan to complete the project.
