Pakistan eyes revival of Iran pipeline projects

Prospects for reviving long-stalled energy projects between Pakistan and Iran have improved amid ongoing diplomatic engagement between Tehran and the United States.

The Iran-Pakistan (IP) gas pipeline project, originally agreed in 2009 and inaugurated in 2013 by former leaders Asif Ali Zardari and Mahmoud Ahmadinejad, has remained stalled for years due to US sanctions on Iran. Plans for an oil pipeline and a major refinery in Gwadar also failed to materialise under similar constraints.

However, with peace talks underway and expectations that sanctions could be eased, experts believe there is renewed momentum for restarting these initiatives. The potential lifting of restrictions could allow Islamabad to move forward with the pipeline, which is seen as critical for ensuring long-term energy security.

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The recent Middle East conflict highlighted vulnerabilities in global energy supply chains, particularly disruptions linked to the Strait of Hormuz. For Pakistan, which relies heavily on imported oil and liquefied natural gas, such disruptions have underscored the need for alternative supply routes.

The IP pipeline, if completed, could provide a more reliable and cost-effective energy source by bypassing key maritime chokepoints. Iran has already completed its portion of the pipeline, while Pakistan has yet to begin construction on its side.

Despite past efforts to secure a sanctions waiver from Washington, progress remained limited. Pakistan also explored alternative options, including LNG pipelines and increased imports from Qatar, but these measures have not fully addressed supply challenges.

As diplomatic developments continue, officials see a potential window of opportunity to revive energy cooperation between Pakistan and Iran, though much will depend on the outcome of ongoing negotiations and the future of sanctions on Tehran.