Pakistan Hires Legal Team for Iran Pipeline Dispute

Pakistan has engaged three prominent international law firms—White & Case, Three Crowns, and Wilkie Farr & Gallagher—along with an Australian legal expert to defend itself in an arbitration case initiated by Iran over the delayed Iran-Pakistan gas pipeline project. Iran claims Pakistan has failed to fulfill its obligations under the Gas Sales and Purchase Agreement (GSPA), potentially incurring penalties of up to $18 billion due to ongoing delays since the project was launched in 2009. Following a final notice from Iran in August 2024, Pakistan submitted details of its legal representation to the International Court of Arbitration in Paris on October 18, 2024. The arbitration will involve both countries appointing arbitrators, with a decision expected within a year. The project has faced significant setbacks primarily due to U.S. sanctions on Iranian energy initiatives, complicating Pakistan's ability to proceed. The dispute highlights the broader geopolitical tensions impacting energy infrastructure in the region.