Pakistan's Defense Minister Expresses Hope for Completion of Joint Gas Pipeline with Iran

Pakistan's Defense Minister, despite U.S. warnings regarding the country's gas cooperation with the Islamic Republic, expressed hope that the completion of the Iran-Pakistan gas pipeline will proceed without any obstacles. Khawaja Muhammad Asif's optimism, expressed in an interview with Geo News, came after Pakistan recently hosted Ibrahim Raisi, the President of the Islamic Republic of Iran. The Defense Minister described this visit as 'successful' and a 'great advancement' in the relations between the two countries. At the end of Raisi's visit to Pakistan, a joint statement was released by both countries emphasizing the importance of cooperation in the energy sector, including electricity trade, power transmission lines, and the gas pipeline project. In this context, Reuters reported that the implementation of the large gas pipeline contract between the neighboring countries, mentioned in the statement, has faced delays due to geopolitical issues and international sanctions. Meanwhile, the U.S. once again warned Pakistan about trading with the Islamic Republic in light of international sanctions against Tehran. Vedant Patel, Deputy Spokesperson for the U.S. State Department, stated on Tuesday, April 23, that any party intending to engage in business with Iran should be aware of the potential risks of sanctions. However, ultimately, the government of Pakistan can act according to its foreign policy objectives. Reuters wrote about the gas pipeline project between the Islamic Republic of Iran and Pakistan, also known as the 'Peace Pipeline,' noting that the construction contract, signed in 2010, aims to supply 750 million to 1 billion cubic feet of natural gas daily for 25 years from Iran's South Pars gas field to Pakistan to meet the country's growing energy needs. This contract has faced various issues, including sanctions, and has a 10-year grace period that will expire this summer, after which the Islamic Republic could sue Pakistan. In this regard, local media reported that Pakistan could face penalties of up to $18 billion for failing to adhere to the agreement. This is significant as Pakistan, whose domestic and industrial consumers rely on natural gas for heating and energy needs, is in dire need of cheap gas. According to the Global Energy Statistical Review by British Petroleum, Iran has the second-largest gas reserves in the world after Russia, but Western sanctions, political turmoil, and construction delays have hindered its development as a major exporter.