Iranian authorities have threatened Pakistan with a $18 billion fine if the multi-billion-dollar gas pipeline project is not completed despite US sanctions, Report informs referring to Daily Times.
According to The News, citing a Ministry of Energy official, Tehran has given Pakistan a deadline of February-March 2024 to build a portion of the Iran-Pakistan gas line project on its territory or face a hefty penalty.
According to reports, Iranian officials told a visiting Pakistani delegation earlier this month that the gas pipeline agreement should be completed within a year. Iran has already finished its portion of the project from the gas field to the Pakistani border.
The neighboring countries inked the pact back in 2009 under the PPP government. According to the agreement, Islamabad was supposed to build around 800 kilometers long pipeline but the project continued to be delayed for 13 years.
Over the years, Pakistani authorities have informed Tehran that it cannot continue with the project in wake of sanctions by the US.
As per the agreement, Iran could not move to any international court in case of delay till 2024. In 2019, Iran warned to move an arbitration to invoke the penalty clause.
Pakistan has reiterated its commitment to carry out the project, but only if international sanctions against Tehran are lifted.