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

Work begins on the Iran-Pakistan gas pipeline at Chah Bahar, Iran, Mar. 11, 2013. (AFP)
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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 FM last week urged Pakistan to complete its part of the much-delayed pipeline
  • Pipeline is incomplete 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 gas pipeline project, Minister of State for Petroleum Dr. Musadiq Malik has said, citing US sanctions on the initiative as the main hurdle for the South Asian nation to meet its side of the bargain.

Discussions to build the 2,775-km pipeline to deliver natural gas from Iran to Pakistan began in 1995, but it has yet to be completed mainly due to a 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 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. Construction would use a segmented approach, where Iran would lay down the pipeline on its side, and Pakistan was supposed to reciprocate on its territory.

In written testimony to the parliament seen by Arab News, Malik said work on the pipeline was stalled due to US sanctions on Iran and project activities would begin once 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, Iran’s 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 Jan. 1, 2015, for failing to complete the pipeline’s construction on its territory. If Iran takes the case to an arbitration court and wins, Pakistan will likely have to pay a penalty amounting to billions of dollars.


From round fruits to lucky charms: How Filipinos invite prosperous New Year

Updated 59 min 59 sec ago
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From round fruits to lucky charms: How Filipinos invite prosperous New Year

  • Lights are lit, doors and windows open to allow good spirits in
  • Sticky rice dishes are served to keep family sticking together

MANILA: With the dining table set with symbolic foods, a bit of noise and rituals to invite good luck, Filipinos are ready to welcome the New Year, carefully observing every tradition and superstition to bring prosperity.

Media noche or the midnight dinner on New Year’s Eve is central to the celebration. Besides traditional meats, there will be sticky rice dishes to keep the family sticking together, and pancit or long rice noodles to represent long life.

There should also be 13 round fruits prepared specifically for the occasion, with 12 representing each month of the year, and the 13th adding extra luck. Because they are round like coins, they are believed to invite abundance, wealth and prosperity.

“We cook bilo-bilo (sticky rice balls) with coconut milk and palitaw (sweet rice cakes). It’s something we simply grew up with,” said Cel Reyes from Mabini in Batangas province, south of Manila.

“It’s sticky, so it symbolizes togetherness, and it is also round. Anything that’s round is prepared also as a symbol of prosperity.”

In Malabon, a coastal city in the northern part of Metro Manila, Priam Nepomuceno’s 86-year-old mother-in-law sets unhulled rice on the table.

“Because of the gold color, it’s believed to bring luck and abundance,” he said. “Grapes are also hung on the door. They’re not meant to be eaten and are kept hanging for the whole year as a symbol of prosperity.”

Some people also jump when the clock strikes 12, believing it will help them grow taller.

In many households, all lights are lit before midnight, with doors and windows open to allow good spirits to enter, while noise from firecrackers and party horns keeps the bad ones at bay.

“By nature, Filipinos are superstitious. We believe in good luck, deities. We give in to faith and luck, and it’s tied to deep spirituality,” said Juanita Galang-Trinidad, an 80-year-old editor from Bulacan province north of Manila.

“We also put 12 coins in varying amounts in our pockets and wear polka dot clothing. Rice, cereal, and salt containers should be full.”

New Year’s celebrations, like Christmas, bring families together, but with extra traditions for good luck. Beyond the midnight feast and keeping round objects on the table and at hand, Filipinos try to pay off debts to avoid financial trouble in the coming year.

On New Year’s Eve, they also avoid serving chicken, as chickens are believed to scratch backward when they eat, symbolically scratching away good fortune.

“We hold on to our traditions despite these growing changes, modernity, in our environment,” Trinidad said.

“We still hold on to our traditions and customs because they identify us as a people, as Filipinos.”