In a significant twist of geopolitical events, Pakistan has reportedly decided to put a major gas pipeline project with neighbouring Iran on hold, a move believed to be influenced by mounting pressure from the United States. This strategic decision comes amidst a complex web of international relations, economic challenges, and energy needs.
Initially conceived as a trilateral effort involving India, Pakistan, and Iran, the gas pipeline project aimed to establish a reliable energy supply route. However, as India withdrew from the project, it eventually evolved into a bilateral initiative between Pakistan and Iran. Unfortunately, the imposition of stringent U.S. sanctions on Iran due to its nuclear program has cast a shadow of uncertainty over Pakistan’s ability to proceed with the pipeline.
The current state of Pakistan’s economy, which has been grappling with financial constraints, prompted the nation to seek assistance from the International Monetary Fund (IMF), securing a substantial loan of $3 billion to stabilise its economic situation.
ALSO READ: India dismisses reports that it opposes BRICS expansion
Recent reports reveal that Pakistan has issued a notice invoking “Force Majeure and Excusing Event” to Iran, effectively suspending its contractual obligations related to the Iran-Pakistan (IP) gas pipeline project. This decision is attributed to factors beyond Islamabad’s control, rendering the project’s continuation unfeasible at this juncture.
At the heart of Pakistan’s hesitation lies the weight of U.S. sanctions on Iran, a diplomatic conundrum that has left the nation wrestling with acute energy shortages despite its sizable population of approximately 240 million people.
Musadik Malik, Pakistan’s Minister of State for Petroleum, confirmed the suspension while underlining the potential for project activities to recommence once the sanctions on Iran are lifted. However, navigating the intricate legal complexities surrounding this matter could entail international arbitration to determine potential penalties and liabilities.
Interestingly, during a recent diplomatic visit by Iran’s Foreign Minister Hossein Amir Abdollahian to Pakistan, the importance of completing the gas pipeline project was emphasised. Abdollahian underscored how the project could serve the vital national interests of both countries, potentially hinting at the broader ramifications of its postponement.
Amidst this intricate web of international relations and energy needs, Pakistan remains committed to honouring its contractual obligations. The government’s ongoing diplomatic discussions with U.S. authorities reflect its determination to secure an exemption for the project. Nevertheless, this development highlights the delicate balance that countries like Pakistan must strike between geopolitical considerations and their domestic imperatives for energy security.
