Pak Iran Pipeline Dispute Govt Forms Committee to Resolve Arbitration Impasse
The Pak Iran pipeline dispute has entered a critical phase. Therefore, Prime Minister Shehbaz Sharif formed a high-level committee to address the issue. The move aims to resolve arbitration and avoid further legal complications. Petroleum Minister Ali Pervaiz Malik shared this update in the Senate. He explained that the committee will review legal, financial, and energy concerns. In addition, it will assess Pakistan’s potential liability.
Arbitration and Missed Deadlines
The dispute reached arbitration in Paris after delays. Pakistan failed to complete its pipeline section on time. As a result, Iran took the matter to the Court of Arbitration in September 2024. Under a 2019 agreement, Pakistan had to finish the project by early 2024. However, work remained incomplete even after a 180-day extension. Consequently, Iran issued a final notice in August 2024. Iran has already made strong progress on its side. It transported gas from the South Pars field to a city near Pakistan’s border. This progress increases pressure on Pakistan to act quickly.
Focus on Settlement and Energy Needs
The government now prefers a negotiated settlement. Malik stated that both countries remain engaged in talks. He added that Pakistan wants to avoid further litigation risks.
The committee is studying future energy demands. It is also reviewing financial impacts and legal exposure. Therefore, officials hope to find a balanced solution soon. US sanctions have slowed progress for years. However, the government now aims to move forward carefully. A practical solution could ease tensions and secure energy supply.
Balochistan Gas Concerns Addressed
The minister also discussed gas issues in Balochistan. Prime Minister Shehbaz Sharif directed him to engage local stakeholders. As a result, another committee is reviewing technical and payment challenges. Deputy Prime Minister Ishaq Dar leads this second committee. It focuses on improving gas supply and resolving provincial concerns. These efforts show a broader push to stabilize Pakistan’s energy sector.
