Pakistan, Saudi Arabia Deepen Cooperation In Mining Sector
January 14, 2026
Pakistan has formally told Iran it will shelve the long-stalled IP gas pipeline but left the door open for revival—if a rare US sanctions waiver comes through.
Read more: Iran and Pakistan Sign Technology MOU
Pakistan has formally conveyed to Iran that it intends to place the Iran-Pakistan (IP) gas pipeline project on hold, opting for an out-of-court settlement approach amid ongoing US sanctions and limited domestic gas demand. Officials have, however, indicated that the project could be reconsidered if a sanctions waiver from Washington becomes available.
The pipeline has remained inactive for over a decade, largely due to restrictions imposed on Iran. While Tehran maintains that construction on its side has already been completed, Pakistan has yet to initiate work, prompting Iran to pursue legal action over missed deadlines. In a renewed push to sustain the agreement, Iran has extended the gas supply deal for another 10 years.
Despite this extension, Islamabad remains cautious. It has proposed revised terms that include smaller gas volumes and lower prices, stressing that progress hinges entirely on sanctions relief. “Pakistan wants the agreement extended if the U.S. grants a sanctions waiver, along with reduced gas volumes and lower prices from Iran,” said The Express Tribune.
Earlier attempts by Pakistan to secure US approval were unsuccessful. US officials have reiterated that sanctions on Iran will continue. Meanwhile, Pakistan is examining other options, including LNG-based infrastructure projects, though these too have faced geopolitical constraints.
