Pakistan Will Not Be Exempt From Fine for Iran Pipeline Project Delay

Pakistan will not get any fine waiver from Iran for delay in completion of Iran-Pakistan gas pipeline project, National Iranian Gas Company Managing Director Hamidreza Araqi said on Monday.

Tehran Times newspaper, citing a news report by Tasnim News Agency, says Araqi made the statement in reply to a claim by Pakistani media that Iran had agreed to waive off Pakistan’s $3 million per day fine and extend the project’s deadline,

Late last month, Iranian Deputy Oil Minister for International and Trade Affairs Ali Majedi denied his country has extended the completion date of the pipeline project from December 2014 to December 2015.

On June 5, 2009 Inter State Gas System of Pakistan and National Iranian Oil Company signed an agreement, which envisaged the first flow of gas to Pakistan to commence by December 31, 2014.

Iran has completed the pipeline on its soil but Pakistan is still to start work on the section of the pipeline that would be constructed on its soil.

Pakistan says lack of funds along with western sanction on Iran has led to the delay as no company is willing to work on the project. Iran has declined to provide funds to Pakistan.