Pakistan asks Iran to suspend obligations in multi-billion-dollar gas pipeline project

Iranians work on a section of a pipeline (on with are sticked Iranian and Pakistanese national flags) after the project was launched during a ceremony with presidents of Iran and Pakistan on March 11, 2013 in the Iranian border city of Chah Bahar. (AFP/File)
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Updated 08 August 2023
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Pakistan asks Iran to suspend obligations in multi-billion-dollar gas pipeline project

  • Iran’s foreign minister last week urged Pakistan to complete its part of the much-delayed pipeline
  • Pipeline has not been completed yet mainly due to lack of funds in Pakistan, US sanctions on Iran

ISLAMABAD: Pakistan has sought the suspension of its contractual obligations in the multi-billion-dollar Iran-Pakistan (IP) gas pipeline project, Minister of State for Petroleum Dr. Musadiq Malik said in a testimony to parliament seen by Arab News on Monday, citing US sanctions on the project as the main hurdle toward Pakistan meeting its side of the bargain.

Discissions to build the 2,775-kilometer pipeline to deliver natural gas from Iran to Pakistan began in 1995 but it has not been completed yet mainly due to lack of funds in Pakistan and complications posed by US sanctions over Iran’s nuclear activities.

Under an agreement signed between the two countries in 2009, the gas pipeline project was to be completed by December 2014 and would deliver 21.5 million cubic meters (760,000 million cubic feet) of gas per day to Pakistan. It was to be constructed using a segmented approach, which means Iran had to lay down the pipeline on its side and Pakistan was supposed to build the pipeline on its territory.

In written testimony to the National Assembly, Malik said work on the pipeline was stalled due to US sanctions on Iran and project activities would begin once they the bans were removed and did not pose a danger to Pakistan’s state-owned entities.

“Pakistan has issued a Force Majeure and Excusing Event notice to Iran under the Gas Sales and Purchase Agreement (GSPA), which resultantly suspends Pakistan’s obligations under the GSPA,” Malik wrote, adding that Iran disputes the validity of the notice.

Force majeure is a clause included in contracts to remove liability for unforeseeable and unavoidable catastrophes that interrupt expected course of events and prevent participants from fulfilling obligations.

“The matter will be finally settled through arbitration, should Iran take this matter to arbitration,” Malik said. “The exact amount of penalty, if any, is subject to the outcome of the arbitration to be determined by the arbitrators.”

Malik said the Pakistani government was engaged with US authorities through diplomatic channels to seek an exemption from sanctions for the gas project.

“All necessary actions are being taken to construct the gas pipeline at the earliest,” he added.

Last week, during a visit to Pakistan, Iranian Foreign Minister Hossein Amirabdollahian urged Islamabad to complete its part of the much-delayed project. 

Under a penalty clause, Pakistan is bound to pay $1 million per day to Iran from January 1, 2015 for failing to complete the pipeline’s construction on its territory. If Iran takes the case to an arbitration court, Pakistan will likely to have to pay billions of dollars as penalty.


Pakistan, other Muslim states raise alarm over Gaza situation after heavy flooding

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Pakistan, other Muslim states raise alarm over Gaza situation after heavy flooding

  • Cold winter rains have repeatedly lashed the sprawling tent cities, turning Gaza’s dirt roads into mud and causing damaged buildings to collapse
  • The situation has been compounded by lack of sufficient humanitarian access, acute shortages of essential life-saving supplies and materials

ISLAMABAD: Foreign ministers of Pakistan, Saudi Arabia and other Muslim nations on Friday voiced concern over the situation in Gaza, following severe flooding triggered by heavy rains in the territory.

As 2026 begins, the shaky 12-week-old ceasefire between Israel and Hamas has largely ended large-scale Israeli bombardment of Gaza. But Palestinians are still being killed almost daily by Israeli fire, and the humanitarian crisis shows no signs of abating.

Cold winter rains have repeatedly lashed the sprawling tent cities over past weeks, turning Gaza’s dirt roads into mud and causing buildings damaged in Israeli bombardment to collapse. UNICEF says at least six children have now died of weather-related causes.

In a joint message, foreign ministers of Pakistan, Saudi Arabia, Egypt, Indonesia, Jordan, Qatar, Türkiye, the United Arab Emirates, expressed their “deepest concern” over the situation, compounded by lack of sufficient humanitarian access, acute shortages of essential life-saving supplies, and the slow pace of the entry of essential materials required for the rehabilitation of basic services.

“The ministers highlighted that the severe weather has laid bare the fragility of existing humanitarian conditions, particularly for almost 1.9 million people and displaced families living in inadequate shelters,” the Pakistani foreign ministry said in a joint statement.

“Flooded camps, damaged tents, the collapse of damaged buildings, and exposure to cold temperatures coupled with malnutrition, have significantly heightened risks to civilian lives, including due to disease outbreaks, especially among children, women, the elderly, and individuals with medical vulnerabilities.”

The statement came a day after UNICEF said a 7-year-old, Ata Mai, had drowned Saturday in severe flooding that engulfed his tent camp in Gaza City. Mai had been living with his younger siblings and family in a camp of around 40 tents.

They lost their mother earlier in the war, according to the UN agency.

Video from Civil Defense teams, shown on Al Jazeera, showed rescue workers trying to get Mai’s body out of what appeared to be a pit filled with muddy water surrounded by wreckage of bombed buildings. The men waded into the water, pulling at the boy’s ankle, the only part of his body visible. Later, the body is shown wrapped in a muddy cloth being loaded into an ambulance.

Foreign minister of Pakistan, Saudi Arabia and other states appreciated the efforts of all United Nations (UN) organizations and agencies as well as non-government organizations (NGOs) in continuing to assist Palestinian civilians and deliver humanitarian assistance under extremely difficult and complex circumstances.

“They demanded that Israel ensure the UN and international NGOs are able to operate in Gaza and the West Bank in a sustained, predictable, and unrestricted manner, given their integral role in the humanitarian response in the Strip. Any attempt to impede their ability to operate is unacceptable,” the statement read.

The foreign ministers reaffirmed support to President Donald Trump’s plan for Gaza, with a view to ensuring the sustainability of the ceasefire, bringing an end to the war in Gaza, to secure a dignified life for the Palestinian people who have endured prolonged humanitarian suffering, and leading to a credible pathway to Palestinian self-determination and statehood.

“In this context, they stressed the urgent need to immediately initiate and scale up early recovery efforts, including the provision of durable and dignified shelter to protect the population from the severe winter conditions,” the statement read further.

“The ministers called on the international community to uphold its legal and moral responsibilities and to pressure Israel, as the occupying power, to immediately lift constraints on the entry and distribution of essential supplies including tents, shelter materials, medical assistance, clean water, fuel, and sanitation support.”