Iran May Sue Pakistan for $18 Billion Due to Gas Project Delay
Since 2014, there have been numerous delays in the Iran-Pakistan gas pipeline project, which has resulted in heightened tensions between the two countries. Iran has made a big step by extending the deadline by 180 days, till September 2024, in response to the project’s ongoing problems. This action is coupled by a strong warning, though, as Iran is ready to take Pakistan to an international arbitration court in Paris should they fail to fulfill the extended deadline. Iran is requesting a hefty $18 billion fine.
This possible legal action highlights how serious the issue is and how frustrated Iran is with the gas pipeline project’s slow progress. When diplomacy fails to resolve a disagreement between two countries, international arbitration courts are sometimes used.Iran’s choice to take this course of action in this particular setting suggests a major deadlock in the negotiation process.
Iran has simultaneously reached out to Pakistan, proposing to deploy a legal and technical team to work with them to find a solution. This action shows a desire to have a conversation and find solutions to the problems that have impeded the project’s progress. The presence of a technical team indicates a dedication to tackling the practical as well as legal issues that could have caused the delays.
The historical rivalries between Iran and Pakistan are entwined with the project’s delays. The challenges encountered in the course of discussions have probably been influenced by these geopolitical considerations. Iran has sent out letters and warnings that emphasize the gravity of the situation and the stakes involved, calling for a quick and peaceful conclusion.
The Iran-Pakistan gas pipeline project is at a crossroads; if the extended deadline is not reached, there is a real risk of international arbitration. Although there may be a way to resolve the issue—the invitation to send a combined legal and technical team suggests one—the state of affairs is still unstable, and the decision will have a big influence on the energy dynamics in the area.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.
