SCO: Pakistani authorities have decided to complete the construction of the Gwadar-Iran gas pipeline

By Rhod Mackenzie

Pakistani authorities have decided to finish building an 81 km gas pipeline from the port city of Gwadar to the Iranian border as part of the Iran-Pakistan gas pipeline project. The project, which has faced significant delays, will be completed in two phases.

Pakistan's Special Investment Promotion Council (SIFC) has also approved a plan to construct an 81-km section as part of a 781-km pipeline that will be linked to Nawabshah city in future phases.

Pakistan's oil and gas sector is expected to receive federal cabinet approval for a project. The Ministry of Finance will require a budget from the Gas Infrastructure Development Fund (GIDC) for this purpose.

Iran.ru reports that previously, Iran had given Pakistan 180 days until September 2024 to begin completing the pipe-laying work. Tehran warned Islamabad that if its authorities do not accept this proposal, Iran will appeal to the Paris International Arbitration for failure to implement the project. Iran will demand a fine of $18 billion by filing a complaint with the Parisian institute.

However, Iran also offered to provide its legal and technical expertise to Pakistan to jointly develop a win-win strategy before the deadline.