The Pakistani government has decided to proceed with the long-delayed gas pipeline project in two phases. Initially, they will lay down 81 kilometers of the pipeline from Gwadar, where Iran has already completed its portion, with plans to later connect it to Nawabshah. This strategy has been approved by the Special Investment Facilitation Council (SIFC). The first step involves laying the 81-kilometer section, followed by the connection to Nawabshah at a later stage.

To execute this plan, the Petroleum Division will seek approval from the federal cabinet, and the finance ministry will secure funds from the Gas Infrastructure Development Cess (GIDC) board. Initially, the 81-kilometer pipeline will supply gas to Gwadar from the IP gas line project.

Iran has granted Pakistan an extension until September 2024, beyond the original 180-day deadline, regarding the completion of their part of the project. Failure to respond positively may lead Iran to pursue international arbitration, potentially resulting in an $18 billion penalty. Nevertheless, Iran has expressed willingness to collaborate with Pakistan to find a mutually beneficial solution before the deadline.

While tensions between the two countries delayed a planned visit by a team of Iranian experts to Pakistan in January, the situation has since normalized. Both nations are now actively cooperating to resolve the outstanding issues. Under the guidance of the SIFC, the Petroleum Division will collaborate with the Ministry of Foreign Affairs to facilitate the visit of the Iranian delegation to Pakistan. Together, they aim to devise a viable plan to ensure the successful completion of the project.