On Wednesday, the Public Accounts Committee (PAC) was informed that Pakistan faces a punishment of $18 billion for failing to complete the Pakistan-Iran gas pipeline project by the deadline specified in the contract.
Noor Alam Khan presided over a meeting of the National Assembly’s (NA) top committee, which discussed the non-use of Rs332 billion in gas infrastructure development cess.
Bargees Tahir demanded progress on the government-funded projects, claiming that just Rs2 billion had been spent out of the Rs325 billion received.
Syed Hussain Tariq says the projects aren’t moving forward and the monies are sitting inert. He forewarned Pakistan of fines if the Iranian gas pipeline project is not finished on schedule.
When the Petroleum Division got Rs2.8 billion, the Secretary of Petroleum questioned how Rs325 billion came to light. The secretary also addressed the safety and security issues of the Turkmenistan, Afghanistan, Pakistan, and India (TAPI) pipeline project.
He also revealed to the group that Pakistan had contacted the US to request assistance over the Iran gas pipeline project. He emphasised that Pakistan cannot purchase gas from Iran due to a prohibition on imports. He said there had been a significant number of meetings with Russia during the previous three to four months.
According to Mohsin Aziz, it was regrettable that none of the three projects for which tax had been collected had advanced. The committee members wanted to know how much punishment Pakistan may face for delaying the completion of the Iran gas pipeline.
In response, the petroleum secretary said that, according to the agreement, the fine could be $18 billion.
Moreover, he mentioned that they had urged the US embassy to either approve the project or provide them with funds to cover the fine.
The chairman immediately gave the US envoy a call and instructed him to alert him to the seriousness of the situation. He also reaffirmed the two choices that the secretary of petroleum had suggested.