Pakistan hires 2 law firms to fight Iran's pipeline delay claim 

 

FILE – An Iranian worker walks past the Pakistan-Iran Gas Pipeline Project in Gabd near Pakistani border in Iran, March 11, 2013.

Islamabad —

Pakistan has hired two U.S.-based law firms to represent it at the International Court of Arbitration as it fights Iran’s bid to force the neighbor country to uphold its end of a gas pipeline deal or pay a large penalty.

Tehran and Islamabad signed a gas sales and purchase agreement (GSPA) in June 2009 for a cross-border pipeline that would supply as much as a billion cubic feet per day of gas to energy-starved Pakistan from Iran’s South Pars Field.

However, Pakistan has not started construction of the pipeline on its territory, primarily to avoid invoking U.S. sanctions.

Last month, Pakistan’s minister for petroleum, Musadik Malik, told parliament that international sanctions stood in the way of proceeding with the cross-border pipeline.

“This is a deeply complicated matter and involves international sanctions," the minister said.

He rejected reports that the country could face a penalty of $18 billion but did not give a figure.

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Hours before the minister’s remarks, U.S. State Department spokesperson Matthew Miller reiterated Washington’s warning against doing business with Tehran.

"We will continue to enforce our sanctions against Iran. We also advise anyone considering a business deal with Iran to be aware of its possible ramifications," the spokesperson said at a regular media briefing.

Iran is under U.S. sanctions for its nuclear and ballistic missile programs.

At times, Pakistan has signaled it will defy U.S. warnings but apparently has not done so operationally or publicly.

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Although Pakistan can construct a pipeline within its border, it requires a sanctions waiver from Washington to purchase gas from Iran. Islamabad has not acquired the waiver.

 

By：VOA