Pakistan and Iran have recently affirmed their commitment to collaborate on formulating an implementation plan for the Iran-Pakistan (IP) gas pipeline project. Following constructive talks in Tehran, both nations are set to commence negotiations within the next two to three weeks, seeking to explore bilateral possibilities and resolve issues related to the $18 billion penalty associated with the project.
While the Iranian deadline for international arbitration looms in September 2024, the renewed commitment from Pakistan underscores the significance of the IP gas pipeline in addressing Pakistan's energy deficit.
Energy Minister Muhammad Ali highlighted the productive discussions, emphasizing the strategic importance of the IP project and the parallel progress on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas line. Notably, Iran proposed an increased export of electricity to Pakistan, particularly for Gwadar and Chaman.
Pakistan, in turn, expressed willingness to consider the proposal, with a focus on securing electricity at a more favorable rate for Gwadar. The Energy Minister outlined plans for enhanced electricity consumption in Gwadar post-establishment of the national grid, illustrating a broader vision for regional energy cooperation. Amidst uncertainties surrounding the IP gas pipeline, both countries aim to navigate potential challenges and facilitate the project's implementation.
Pakistan and Iran have reaffirmed their commitment to advancing the Iran-Pakistan (IP) gas pipeline project, signaling a renewed push for bilateral cooperation. Following constructive talks in Tehran, negotiations are set to commence within the next two to three weeks, with both nations aiming to develop an implementation plan and address issues associated with the $18 billion penalty linked to the project.
Despite the looming Iranian deadline for international arbitration in September 2024, Pakistan's Energy Minister, Muhammad Ali, emphasized the country's commitment to the IP project, citing discussions on the strategic significance of the initiative and parallel progress on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas line.