PM forms committee to resolve Pak-Iran gas pipeline dispute, Senate told

Prime Minister Shehbaz Sharif has set up a high-level committee to seek a negotiated settlement of the long-delayed Pak-Iran Gas Pipeline project while assessing the financial risks Pakistan could face from ongoing arbitration, Petroleum Minister Ali Pervaiz Malik told the Senate on Tuesday.

Responding to a Calling Attention Notice by Senator Talha Mahmood, the minister said the committee was reviewing the project from legal, financial and energy perspectives to determine a solution that protected Pakistan’s national interests.

The project has been the subject of arbitration proceedings in Paris, creating the possibility of financial liabilities for Pakistan. Malik said the government was therefore seeking to resolve the matter through negotiations rather than allowing the dispute to become more complicated through prolonged litigation.

He said Pakistan and Iran maintained close ties and that the leadership of both countries remained engaged in efforts to reach a settlement acceptable to both sides.

According to the minister, Iran had already made considerable progress on its portion of the project, including bringing gas from the South Pars field to a major city near the Pakistani border.

The committee is assessing Pakistan’s potential financial exposure, the consequences of the arbitration and the country’s long-term energy needs before recommending a way forward, Malik said.

The minister also addressed concerns regarding gas supplies and related issues in Balochistan. He said the prime minister had instructed him to consult provincial stakeholders on the matter.