PM Forms Committee to Resolve Long-Running Pak-Iran Gas Pipeline Deadlock

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a high-level committee to examine the long-standing deadlock surrounding the Pakistan-Iran gas pipeline project, with the government looking for practical options to move the strategically important project forward.

Interior Minister Mohsin Naqvi informed the Senate that the prime minister had taken serious notice of the issue and constituted a committee comprising relevant federal ministers, officials from the Energy and Petroleum Division and technical experts.

The development comes as Pakistan continues to face challenges in meeting its growing energy requirements while the Iran-Pakistan gas pipeline remains stalled because of international sanctions, financing difficulties and other technical and diplomatic complications.

High-Level Committee to Examine the Project

According to the minister, the newly formed committee will review all aspects of the pipeline project and recommend possible ways to resolve the obstacles preventing its completion.

The committee is expected to examine the legal, financial, technical and diplomatic dimensions of the project. It will also explore alternative financing arrangements and other mechanisms that could allow Pakistan to pursue its energy interests without exposing the country to serious international financial risks.

Naqvi told the Senate that the government remained committed to finding a workable solution and would continue examining all available options.

The formation of the committee signals renewed attention from Islamabad toward a project that has remained incomplete for years despite repeated efforts by Pakistan and Iran to revive it.

A Project Decades in the Making

The Iran-Pakistan gas pipeline project was conceived as a major energy initiative intended to transport natural gas from Iran into Pakistan.

The project was expected to help Pakistan meet its domestic energy requirements by providing an additional source of natural gas for power generation, industry and other sectors.

The planned pipeline has long been considered an important component of Pakistan's energy strategy. However, its implementation has repeatedly been delayed because of financial, geopolitical and sanctions-related challenges.

The project has therefore remained one of the most complicated energy initiatives between the two neighbouring countries.

Sanctions Remain a Major Obstacle

One of the biggest challenges facing the pipeline is the international sanctions environment surrounding Iran.

Pakistan has repeatedly expressed interest in completing its portion of the project, but international restrictions have made it difficult to secure financing, equipment and international partnerships for the pipeline.

Banks and international companies remain cautious about participating in projects involving Iran because of the possibility of sanctions and financial penalties.

This has created a difficult situation for Islamabad, which must balance its energy requirements and bilateral commitments with Iran against its broader international financial and diplomatic relationships.

Pakistan Exploring Alternative Options

The committee formed by Prime Minister Shehbaz Sharif is expected to consider different options for overcoming these obstacles.

Officials are likely to examine alternative financing models, possible exemptions, technical arrangements and diplomatic channels that could help reduce the risks associated with the project.

The government has also indicated that it wants to explore every possible avenue before abandoning the project.

For Pakistan, the issue is particularly important because the country remains heavily dependent on imported energy and faces periodic pressure on its gas supply.

Potential Energy Benefits

The completion of the pipeline could provide Pakistan with an additional source of natural gas and potentially reduce some pressure on the country's energy system.

An additional pipeline-based supply could support power generation and industrial activity while helping diversify Pakistan's energy sources.

The project has also been viewed as an opportunity to strengthen economic ties between Pakistan and Iran.

Greater energy cooperation could potentially lead to wider commercial engagement between the two neighbouring countries.

Impact on Pakistan's Energy Security

Pakistan's energy requirements have increased significantly over the years because of population growth, industrial expansion and increasing electricity demand.

The government has therefore been looking at multiple sources of energy, including imported liquefied natural gas, domestic gas production, renewable energy and regional energy projects.

The Iran-Pakistan pipeline could form part of this broader strategy by providing another potential source of natural gas.

Energy experts have also argued that greater diversification could help Pakistan reduce its dependence on a limited number of suppliers and routes.

Diplomatic Dimension

The pipeline is not simply an economic or energy project. It also has an important diplomatic dimension.

Pakistan and Iran share a long border and have historically maintained close cultural and economic links. Energy cooperation could provide another area in which the two countries strengthen bilateral relations.

However, Islamabad must also consider its relationships with major international partners and the possible consequences of violating or triggering sanctions.

This balancing act has been one of the central reasons why progress on the pipeline has remained difficult.

Senate Briefed on Government's Position

During the Senate proceedings, Mohsin Naqvi assured lawmakers that the government was aware of the importance of the project and the challenges surrounding it.

He said the committee would examine the matter carefully and work toward recommendations that could provide a practical way forward.

The government has also indicated that relevant ministries and experts will remain involved in the process so that any proposed solution takes account of financial, legal and technical realities.

A Long-Standing Challenge

The Iran-Pakistan pipeline has survived several changes in governments and repeated attempts to revive negotiations.

At different stages, Pakistan has faced pressure to accelerate construction while simultaneously dealing with concerns over sanctions and financing.

Iran, meanwhile, has consistently maintained its interest in seeing the project completed.

The latest committee could therefore represent another attempt to break the cycle of negotiations, delays and uncertainty.

What Happens Next?

The immediate task for the newly formed committee will be to identify realistic options for moving the project forward.

That could involve consultations with energy experts, financial institutions, legal advisers and diplomatic authorities.

The committee may also have to determine whether the project can be redesigned or financed in a way that reduces exposure to international sanctions.

Any major decision is likely to require careful coordination between several ministries and government institutions.

A Test for Pakistan's Energy Policy

The pipeline debate comes at a time when Pakistan is seeking long-term solutions to its energy challenges.

The country needs reliable and affordable energy to support economic growth, industrial production and employment. At the same time, the government must manage foreign-exchange pressures and the financial costs associated with energy imports.

Against this backdrop, the Iran-Pakistan pipeline remains a potentially important but highly complicated option.

The committee formed by Prime Minister Shehbaz Sharif now faces the task of determining whether a workable path can be found.

Conclusion

The formation of the high-level committee marks renewed government attention toward the stalled Pakistan-Iran gas pipeline project.

While sanctions, financing difficulties and geopolitical considerations remain significant obstacles, Islamabad appears determined to explore possible solutions rather than allowing the project to remain indefinitely unresolved.

The coming months will show whether the committee can develop a practical framework capable of addressing the project's financial and diplomatic challenges.

For Pakistan, the outcome could have important implications for energy security, regional cooperation and its broader strategy for meeting future gas requirements.