According to well-placed sources, Pakistan requested a waiver from the US on the sanctions imposed on Iran to resume the Pak-Iran gas pipeline project, but the US refused to give any concession. While flatly refusing, the U.S. also expressed its concern about this project.
It should be noted that there is a deadline of March this year to complete Pakistan’s part of the Pak-Iran gas pipeline project, and if Pakistan does not start the project by March, it will have to pay a fine of 18 billion US dollars.
According to sources, Pakistan has communicated to Iran that it wishes to finish this project but is unable to do so because of the sanctions placed on Iran following America’s rejection. Pakistan requested that Iran extend the deadline of March in light of the present circumstances.
As per the deal, Iran has constructed a pipeline spanning 700 miles, while Pakistan has created a pipeline spanning 500 miles, which would connect to Balochistan and Sindh.
A few days prior, the caretaker government in Pakistan gave its consent for the Pakistan-Iran pipeline project to be completed. However, following this clearance, the United States formally conveyed to Pakistan its reservations. Pakistan again halted the project’s implementation following American objections.
The Iran-Pakistan gas pipeline, sometimes referred to as IP Gas or the Peace pipeline, is a complicated project that is impacted by economic variables, international sanctions, and geopolitical concerns. The project was once intended to transfer natural gas from Iran to Pakistan, but it has faced several difficulties since its beginning.
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The project near Iran’s Chabahar port was officially opened in March 2013 by Presidents Zardari and Ahmadinejad, marking the beginning of the USD 7.5 billion endeavor. Though Iran finished their section of the pipeline, US sanctions caused the process to stop. In order to avoid legal difficulties, negotiations must end by March 2024, and Islamabad will have until September 2024 to fulfill its responsibilities.
Both countries were attempting to investigate ways to finish the pipeline outside of US sanctions, highlighting the project’s significance for their own national interests, but the US was not prepared to provide any kind of waiver.