Pakistani PM to Discuss Delay in Pipeline Project with Iran
TEHRAN (Tasnim) — Pakistani Prime Minister Nawaz Sharif is scheduled to pay a visit to Iran next month and ask the country to waive penalty following delay in a multi-billion-dollar pipeline project.
According to Pakistani officials, Islamabad would have to face a penalty of $3 million per day if it dithers and fails to put the required project infrastructure in place on time, the Express Tribune reported on Tuesday.
They suggest that the dispute may also take the two sides to the international court of arbitration if the penalty is not waived.
In case of disagreement, the two countries may land in the international court of arbitration to settle the matter, sources say.
In addition to this, Pakistan and Iran will sign a 3,000-megawatt power supply deal during the Pakistani premier’s trip, which is slated for May 11-12.
Pakistan is already importing 73MW from Iran to meet the needs of Gwadar, but has not been able to clear outstanding payments, a process impeded by US sanctions against Iran that blocks transactions through banks.
The US has already refused to exempt the Iran-Pakistan (IP) pipeline from sanctions, triggering uncertainty about the future of the project.
