Iran has issued a final warning to Pakistan to complete its section of the cross-border gas pipeline or face international arbitration and potential billions of dollars in penalties. The dispute stems from US sanctions imposed on Iran, hindering Pakistan’s completion of the project. Pakistan faces a delicate balance between avoiding US sanctions and the potential for substantial financial penalties.
Results for: Gas Pipeline
The United States expressed concern and issued a warning to Pakistan after the country signed eight MOUs with Iran and agreed to increase bilateral trade to $10 billion. Pakistan’s government spokesperson stated that it does not require a waiver from US sanctions to construct its portion of the Pak-Iran gas pipeline, prompting the warning.