“In Pakistan, officials in the Law Division have initiated discussions onhow to restructure the Iran-Pakistan (IP) gas pipeline project to mitigatethe impact of US sanctions and avoid the $18 billion penalty sought byIran.
The proposed approach involves Pakistan not directly purchasing gas fromIran but instead using a third-party intermediary or a powerful nation tobypass US sanctions. Iranian authorities are also involved in thesedeliberations.
The caretaker Energy Ministry was questioned about these efforts, but noresponse was provided. Pakistan has been cautious in implementing theproject due to concerns about US sanctions against Iran. Iran maintainsthat there are no sanctions on gas trade and pipeline construction withinPakistan’s territory.
In January 2023, Iran formally requested that Pakistan complete a portionof the IP gas line project within its territory by February-March 2024 orface the $18 billion penalty.
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This request was made during Pakistan’s delegation visit to Tehran inNovember-December 2022. Iran has already completed a section of thepipeline within its own territory, extending from the gas field to thePakistan border.”