According to recent reports, Pakistan has made the decision to temporarily shelve a substantial multi-billion dollar gas pipeline project intended to facilitate the import of cost-effective energy from its neighboring nation, Iran. This move comes amidst indications that the project has been put on hold due to external pressures, particularly from the United States.

The initiative, aimed at securing a reliable and economical energy supply, has been set aside as Pakistan navigates the complex dynamics of its international relationships and geopolitical considerations.

As per reports by PTI, Pakistan's recent decision to shelve a multi-billion dollar gas pipeline project with Iran has ostensibly been influenced by pressures from the United States. The U.S. has imposed sanctions on Iran in connection with its nuclear program, which is believed to have impacted Pakistan's course of action.

This development emerges at a crucial juncture when Pakistan grapples with the task of stabilizing its financially strained economy. Collaborating with the International Monetary Fund (IMF), Pakistan secured a substantial USD 3 billion loan as part of its efforts to address economic challenges.

Originally conceived as a trilateral undertaking involving India, Pakistan, and Iran, the gas pipeline project underwent a transformation over time. It ultimately evolved into a bilateral venture between Pakistan and Iran after India's withdrawal from the initiative.

The stringent sanctions enforced by the U.S. on Iran in relation to its nuclear pursuits have reportedly deterred Pakistan from progressing with the construction of the pipeline. The repercussions of these sanctions are seen as a major factor influencing Pakistan's stance.

The Dawn newspaper has reported that Pakistan formally invoked a 'Force Majeure and Excusing Event' clause, signaling a suspension of its contractual obligations concerning the Iran-Pakistan (IP) gas pipeline project. This decision, attributed to factors beyond Islamabad's control, underscores Pakistan's inability to proceed with the initiative as long as U.S. sanctions on Iran remain in effect. The newspaper noted that the project, which has remained dormant for nearly a decade, is a topic of concern in a nation grappling with severe energy shortages, given its population of 240 million people.

The dynamics surrounding this project highlight the intricate interplay of geopolitical forces, economic imperatives, and external influences shaping Pakistan's strategic decisions in the realm of energy infrastructure development.

According to a written testimony Minister of State for Petroleum, Musadik Malik has given to the National Assembly. “Pakistan has issued a Force Majeure and Excusing Event notice to Iran under the Gas Sales and Purchase Agreement (GSPA), which resultantly suspends Pakistan’s obligations under the GSPA.”

Image source: PTI