US Sanctions Main Hurdle to Pakistan-Iran Gas Pipeline, Petroleum Minister Tells Senate
ISLAMABAD: Federal Petroleum Minister Ali Pervaiz Malik has said that sanctions on Iran remain the main obstacle to Pakistan making practical progress on the Iran-Pakistan gas pipeline project.
The issue was raised during a Senate session chaired by Presiding Officer Shahadat Awan, where Senator Talha Mahmood moved an adjournment motion concerning the non-completion of the Iran-Pakistan gas pipeline and the gas shortage in the country.
Senator Talha Mahmood pointed out that the Iran-Pakistan gas pipeline project had been delayed for nearly two decades. He said Iran had completed the pipeline up to Pakistan’s border and questioned whether Pakistan was prepared to receive Iranian gas if sanctions were lifted.
He asked how much preparation Pakistan had completed for laying the pipeline on its side, whether Iranian gas could be immediately integrated into the country’s system and how long it would take to activate the pipeline once sanctions were removed.
The senator also sought details about the infrastructure required to receive Iranian gas and asked whether the country would be able to access Iranian gas immediately if sanctions were lifted.
Responding to the notice, Petroleum Minister Ali Pervaiz Malik said sanctions were currently in place against Pakistan in relation to the project, which was why practical steps were not being taken.
He said both countries were trying to find a solution to the Iran-Pakistan gas pipeline issue in a friendly environment.
“The government is trying to find a solution to the Iran-Pakistan gas pipeline issue in Pakistan’s interest,” the minister said.
Ali Pervaiz Malik said Iran had made considerable progress on its side of the pipeline and had taken gas supplies up to its Pars region. However, he added, Pakistan could not make similar progress because of the sanctions.
The petroleum minister said Iran had also approached an arbitration court in Paris over the matter. He added that efforts were underway to find a solution acceptable to both countries.
He said Prime Minister Shehbaz Sharif had constituted a steering committee on the Iran-Pakistan gas project comprising Deputy Prime Minister Ishaq Dar, the Attorney General and the petroleum minister himself.
Ali Pervaiz Malik said the legal proceedings concerning the pipeline remained a major issue and the government would examine the legal aspects before attempting to resolve the matter.
The minister also informed the Senate that the profits of oil marketing companies would be lower this year compared with the previous year. He said details regarding the profits of oil marketing companies were maintained by the Ministry of Finance.
