The Pakistan Public Accounts Committee (PAC) expressed concerns on Wednesday about the potential payment of an $18 billion penalty if Pakistan backs out of the Iran-Pakistan Gas Pipeline project, according to a report by DAWN.
PAC Chairman Noor Alam Khan stated that if the US does not approve of Pakistan and Iran proceeding with the gas pipeline project, the US should be responsible for paying the penalty. Khan added that the US should eliminate double standards, as it shows leniency towards India in meeting its energy needs while punishing Pakistan for the same.
The concerns raised by the PAC came after Pakistan’s Ministry of Foreign Affairs (MoFA) informed the committee that a meeting with the US ambassador would be arranged upon his return from Washington.
The MoFA stated that it has been exploring various options, including engaging with relevant parties such as Iran and the US, given the significance of the Iran-Pakistan gas pipeline project in the evolving regional situation. The Prime Minister’s Office has held inter-ministerial meetings and agreed on an action plan to proceed with the project.
In response to a question about petroleum product purchases from Russia, the foreign ministry confirmed that an agreement had been made to purchase a test cargo of crude oil from Moscow, which is expected to arrive in Pakistan soon. The ministry also mentioned that Pakistan remains committed to the Pak Stream Pipeline project and is negotiating outstanding issues with Russia.
The Iran-Pakistan Gas Pipeline project aims to deliver natural gas from Iran to Pakistan and is currently under construction. It is designed to transport natural gas from Iran’s South Pars field to Baluchistan and Sindh provinces in Pakistan. Reports suggest that once completed, the pipeline will enable Pakistan to receive 750 million cubic feet of gas from Iran daily. The project has faced significant delays, with an original completion date of December 2014 and operations scheduled to begin on January 1, 2015.
Earlier this year, during a visit by a Pakistani official delegation, Tehran declared that US sanctions on Iran are illegal and urged Pakistan to construct the gas pipeline in its territory by February-March 2024.
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