The National Grid Company (NGC), formerly NTDC, has proposed that the federal government address the unresolved payment issue related to an arbitral award against the Iranian company GAM ARAK, using a committee currently working on an out-of-court settlement under the Iran-Pakistan Gas Project, Business Recorder reported.
National Grid Company submitted a report to the government on July 17, 2025, following a meeting on the outstanding payments.
The dispute stems from an award issued by the International Chamber of Commerce (ICC) in Arbitration Case No. 2272412F IAYZ, dated April 21, 2020, with an addendum issued on July 28, 2020. The total amount due, including interest, stands at approximately $3.658 million as of June 30, 2025.
Despite repeated reminders, GAM ARAK has not honored the arbitral decision. NGC, backed by legal counsel, remains committed to ensuring that national and public interests are safeguarded through a negotiated settlement.
The Chief Law Officer of NGC highlighted the constructive nature of the meeting and the transparent discussion of legal avenues pursued both domestically and internationally. Assurances from the Iranian Embassy in Islamabad regarding efforts to engage GAM ARAK via Iran’s Chambers of Commerce were seen as positive steps towards compliance.
To address the issue, NGC has outlined several steps, including diplomatic engagement through Iran’s national energy company, TAVANIR, and through the Embassy of Pakistan in Tehran. This government-to-government dialogue aims to facilitate the recovery of the award. NGC also emphasized the importance of using diplomatic channels, including Iranian Chambers of Commerce, to exert pressure for timely compliance.
Additionally, NGC acknowledged the role of the Prime Minister’s committee on the Iran-Pakistan Gas Project as a potential platform for further facilitating an amicable resolution.
NGC has requested continued coordination from the Iranian embassy, confident that it will lead to constructive dialogue, encourage GAM ARAK’s compliance, and result in a timely resolution.
