In a bid to meet its contractual obligations with Iran, Pakistan is in talks with the United States to secure a waiver from sanctions imposed on the Iran-Pakistan (IP) Gas Pipeline Project.
This was confirmed by Pakistan’s Federal Energy Minister, Dr Musadiq Masood Malik, during a press conference on Thursday.
The caretaker government has initiated the construction of an 80-kilometer segment of the pipeline within Pakistani territory to avoid potential legal challenges from Iran, which could lead to an $80 billion penalty if the dispute were taken to international courts.
By advancing the pipeline’s construction and seeking a sanctions waiver, Pakistan aims to balance its legal obligations with international economic restrictions.
In a relevant development, the Iranian Ambassador to Pakistan Dr Reza Amiri Moghadam said that a Free Trade Agreement (FTA) is likely to be signed during President Ebrahim Raisi’s forthcoming visit to Pakistan.
While engaging with the Islamabad Chamber of Commerce and Industry, Ambassador Moghadam highlighted the FTA’s potential to amplify bilateral trade. The visit is also expected to witness the signing of numerous economic and trade agreements.
The Iranian envoy said the necessity of robust air, maritime, and sea connections to fortify economic relations and integrate Pakistan into the regional and global trade network.Â
He specifically pointed out the strategic maritime proximity of Karachi and Gwadar in Pakistan to Chabahar and Bandar Abbas in Iran, advocating for Gwadar and Chabahar to be recognized as sister ports.
Ambassador Moghadam said that the current trade volume between the two nations stands at a modest $2.5 billion which could reach $5 billion in the coming years.
