Pakistan-Iran gas pipeline revival on the cards?

The Pakistan-Iran gas pipeline project has once again emerged as a key topic of discussion amid improving diplomatic engagement between Tehran and Washington and growing expectations that sanctions on Iran could eventually be eased.

Chairman ARY Group Kamran Khan believes that any relaxation of restrictions on Iran could provide fresh momentum to the long-delayed energy project, which has remained stalled for years due to sanctions-related concerns and financial constraints.

Signed in 2009, the pipeline agreement envisaged Iran supplying up to one billion cubic feet of natural gas per day to Pakistan over a 25-year period. While Iran completed construction of its section of the pipeline, Pakistan has yet to finish its portion of the project.

The delay has remained a source of concern in bilateral relations, with Tehran repeatedly urging Islamabad to fulfil its commitments under the agreement. Iranian officials have on several occasions warned of possible legal action over the prolonged postponement, although no formal international arbitration ruling has been issued to date.

With Pakistan facing persistent energy shortages and rising fuel import costs, the prospect of accessing relatively affordable Iranian gas has once again brought the project into the spotlight. Energy experts argue that the pipeline could help strengthen Pakistan’s energy security while reducing pressure on the country’s import bill.

The issue has gained renewed attention following recent diplomatic exchanges between Pakistan and Iran. Observers view the visit of Iranian President Masoud Pezeshkian to Islamabad as an indication of both countries’ desire to expand economic cooperation, particularly in the energy sector.

Beyond the pipeline itself, a broader improvement in Pakistan-Iran economic relations could open opportunities in cross-border trade, petroleum imports, transit commerce and regional connectivity. However, the future of the pipeline remains closely linked to developments surrounding international sanctions and the broader geopolitical environment.

For Pakistan, the revival of the Iran-Pakistan gas pipeline would represent more than a bilateral energy project. It could become a significant step towards addressing the country’s long-term energy challenges while strengthening economic ties with a key regional neighbour.

As diplomatic and economic conditions continue to evolve, the pipeline is once again being viewed as one of the most consequential energy projects for Pakistan’s future.