Pak-Iran gas pipeline: PM forms committee to resolve arbitration impasse, Senate told

• Pakistan seeks negotiated settlement with Iran over pipeline: Malik.
• Committee to review legal, financial and energy aspects: minister.
• Govt wants to avoid further complications in litigation, says minister.

Petroleum Minister Ali Pervaiz Malik on Tuesday told the Senate that Prime Minister Shehbaz Sharif has formed a high-level committee to resolve the Pak-Iran gas pipeline arbitration impasse.

Responding to a Calling Attention Notice by lawmaker Talha Mahmood, the minister said the committee was examining the project's legal, financial and energy aspects, including Pakistan's potential liability and future energy requirements.

He said Iran was a brotherly country and the leadership of both countries remained fully engaged in efforts to reach an amicable settlement acceptable to both sides.

Malik said Iran had already made substantial physical progress on its side, bringing gas from the South Pars field to a major Iranian city near the Pakistan border.

The matter had gone into arbitration in Paris, he said, making it important for Pakistan to carefully manage the potential liability associated with the project.

Iran had moved the matter to the Court of Arbitration in Paris in September 2024 after Pakistan failed to build its portion of the pipeline and begin taking 750 million cubic feet of gas daily.

Under a revised agreement signed in 2019, Pakistan was required to complete its portion of the pipeline by February-March 2024. Iran later granted a 180-day extension, but the deadline expired in September 2024 without the work being completed.

Iran had served a final notice in August 2024, warning that it would pursue arbitration over Pakistan’s failure to fulfil its commitments. The project has faced years of delays, with Pakistan citing US sanctions as a major obstacle.

Malik told the Senate today that the government wanted to avoid further complications in litigation and was therefore working towards a negotiated resolution with Iran.

The committee was examining the country's potential liability, the implications of litigation and the country's future energy requirements to determine a way forward, Malik added.

Responding to concerns over gas-related issues in Balochistan, the petroleum minister said the premier had directed him to engage with provincial stakeholders.

He said another high-level committee, headed by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, was examining the province's gas-related issues, including technical and payment matters.