• Wednesday, October 23, 2019

Pakistan Won’t be Paying Billions of Dollars to Iran Anymore

Discussion in 'Pakistan Economy' started by Kabira, Sep 18, 2019.

  1. Kabira

    Kabira ELITE MEMBER

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    Pakistan and Iran have signed a new contract in which the former won’t be liable to pay billions of dollars in penalties for delaying its side of work on the Iran-Pakistan gas pipeline.

    The Inter-State Gas Systems (Pvt) Limited (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) of Iran inked the revised agreement on Monday. The new agreement says that the two neighboring countries will work collaboratively to find a viable solution to the project.

    Iran-Pakistan gas pipeline also called the Peace Pipeline, or IP Gas is incomplete due to international sanctions on Iran. The project was started in 1995 and the neighboring countries were also interested in it. However, work on the project began in March 2013, 18 years after it was scheduled to start.

    Pakistan was due to complete the project by December 2014 but missed the deadline due to international pressure. In the same year, former Petroleum Minister Shahid Khaqan Abbasi informed the National Assembly that the project was off the table due to sanctions on Iran.

    In 2018, Iranian authorities threatened to take up the matter with the international court of justice and demand compensation. In February this year, Pakistan formally received a notice from Iran that they were moving to an arbitration court against Pakistan.

    However, the two countries held a meeting and decided to revise the contract and enhance the deadline by another five years.

    Under the new contract, Pakistan has to complete the project by 2024 to buy 750 million cubic feet of gas per day from the neighboring country.
    https://propakistani.pk/2019/09/17/pakistan-wont-be-paying-billions-of-dollars-to-iran-anymore/
     
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  2. Retired Troll

    Retired Troll ELITE MEMBER

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    Increase in Khums will compensate for this.
     
  3. khansaheeb

    khansaheeb SENIOR MEMBER

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    Pakistan should just get on with it rather than wasting time. This delay has cost us cheap gas for our people.
     
    Last edited: Sep 18, 2019
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  4. Indus Pakistan

    Indus Pakistan ELITE MEMBER

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    Irani Shia gas is not kosher to the Americans and not halal to the Saudi's. So we are stuck in limbo. The funny part is Iran threatening to go to court. The chance of Iran winning in international court was same as a poor black slave winning in court in 18th century America against a white plantatio owner.
     
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  5. شاھین میزایل

    شاھین میزایل BANNED

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    Seriously Iran should have avoided international sanctions for the project to go ahead.
    Iran comes under international sanctions every other day, and Pakistan cannot trade with Iran due to that.
    So it should be Pakistan billing Iran for the delay, not the other way round.
     
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  6. T|/|T

    T|/|T FULL MEMBER

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    Pakistan should have let iran go to international court. Iran is under sanctions and thats why the project cant go ahead.

    Pakistan this summer was already having surplus gas, so there is no need to buy more and waste money at this cruicial time.
     
  7. Dexon

    Dexon FULL MEMBER

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  8. Battle of Waterloo

    Battle of Waterloo BANNED

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    The international courts are not politicised like US courts, the ICJ has very recently issued an order in favour of Iran in fact; declaring that US sanctions de facto impeded humanitarian trade and ordering the US to lift those sanctions.

    Enforcement is another issue, but that's not the job of the court.

    Iran is not under international sanctions, all UNSC sanctions were lifted pursuant to the JCPOA.

    So you'll have to find a better excuse for failing to perform your contractual obligations.
     
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  9. Kabira

    Kabira ELITE MEMBER

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    Doesn't matter now, contract is changed.
     
  10. jamal18

    jamal18 SENIOR MEMBER

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    I think the problem is punitive sanctions from the US; I guess are Arab allies won't be too pleased either.
     
  11. شاھین میزایل

    شاھین میزایل BANNED

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    Yeah, Iran is still under sanctions.
    Plus Iran is in bed with India and if Pakistan starts importing gas from Iran, they will pressurise Pakistan to continue to pipeline to India. Not gonna happen.
     
  12. Battle of Waterloo

    Battle of Waterloo BANNED

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    "Iran comes under international sanctions every other day"

    Please tell us what "international sanctions" you are talking about. :)
     
  13. Irfan Baloch

    Irfan Baloch SENIOR MODERATOR

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    how?

    Trump tore the multinational peace deal which former president signed just because he hated Obama.
    Iran didn't violate the agreement as confirmed by American experts including CIA but still sanctions were imposed because American war of terror on Middle east didn't turn out the way America wanted.
    it wasn't just Iran frustrating America's deign on Syria etc but GCC disapproval of Pakistan going ahead with this project this is why KSA paid a bribe of 1.5 Billion dollars to Nawaz to axe the project
     
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  14. Dual Wielder

    Dual Wielder FULL MEMBER

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    Did that bribe go our treasury or just fill Nawaz's pockets?
     
  15. شاھین میزایل

    شاھین میزایل BANNED

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    We cannot take stand against USA for Iran. Not worth it .
    Simple.
    If USA says don't do business with Iran, it's Iran's responsibly to fix it, not Pakistan's.
    Zardari stopped Iran Pakistan pipeline project due to US sanctions.