In a significant and alarming development, Iran has officially informed Pakistan that it has no choice but to approach the Paris Arbitration Court in September 2024 due to Pakistan’s failure to construct the pipeline under the Iran-Pakistan (IP) gas project within the extended 180-day deadline. The project, which has been delayed for over a decade since 2014 due to concerns over potential US sanctions, now faces a critical juncture.
The Gas Sales Purchase Agreement (GSPA) between the two nations, signed in 2009 under French law, stipulates that any disputes arising between Iran and Pakistan would be resolved by the Paris-based Arbitration Court, which does not recognize US sanctions. In a revised contract signed in September 2019, Pakistan agreed to complete its portion of the pipeline by 2024, enabling the intake of 750 million cubic feet of gas daily from Iran.
Despite Iran granting Pakistan an additional 180-day extension, the deadline is set to expire in September 2024, with Pakistan still unable to meet its obligations. Consequently, Iran has served its final notice, indicating its intention to pursue legal action in the Paris Arbitration Court.
