Claim: Iran has fined Pakistan up to $18 billion for failure to construct its part of the 800 kilometre gas pipeline as part of the Iran-Pakistan gas pipeline project.
Fact: Iran has not imposed such a fine on Pakistan. In fact, Pakistan’s caretaker government approved the construction of an 80 kilometre segment of the pipeline in February 2024.
Iran-Pakistan gas pipeline
The “Peace Pipeline” project, signed in 2010, aimed to supply 750 million to a billion cubic feet per day of natural gas for 25 years from Iran’s South Pars gas field to Pakistan. The pipeline was to stretch over 1,900 kilometres, with 1,150 km in Iran and 781 km in Pakistan. Iran claims to have invested $2 billion in constructing its part of the pipeline, making it ready to export. However, Pakistan delayed construction, citing international sanctions on Iran.
In 2014, Pakistan requested a 10-year extension to construct the pipeline, which ends in September 2024, making the country eligible for a potential fine if it does not hold up its end of the agreement. However, in February 2024, Pakistan’s caretaker government approved commencement to build an 80 kilometre segment of the pipeline. In March, Pakistan said that it does not need a waiver from US sanctions to build a gas pipeline with Iran.
Iranian President Ebrahim Raisi’s visit to Pakistan this month has put the spotlight on the pipeline deal.
Fact or Fiction?
On 2 March 2024, Facebook user Tahir Khan claimed that a fine of $18 billion has been imposed on Pakistan due to its inability to build its portion of the 800-kilometre pipeline which is meant to import natural gas from Iran as part of the Iran-Pakistan Pipeline project.
The caption reads,
“ایران سے معذرت، امریکہ نہیں مان رہا،
پاکستان پر 18 ارب ڈالر جرمانہ عائد، گیس
پائپ لائن منصوبہ خواب رہ گیا، مدت ختم
[Sorry Iran, America is not agreeing.
A fine of $18 billion has been imposed on Pakistan, The gas pipeline project will only remain a dream now. Period over]”
Soch Fact Check found the claim to be false. On 23 February 2024, the Ministry of Energy (Petroleum Division) issued a press release regarding the project.
The press release stated that the Cabinet Committee on Energy (CCoE) had approved the Iran-Pakistan gas pipeline project after taking up the petroleum division’s summary on the project.
The initial phase involves constructing an 80 km segment, from Pakistan’s border with Iran to Gwadar, to be managed by Inter State Gas Systems (Pvt) Ltd.
The statement also noted that the funding will come from the Gas Infrastructure Development Cess.
A Reuters report stated that Pakistan’s 10-year extension to construct the pipeline, beginning in 2014, ends this year in September. Citing local media reports, the article added that if Pakistan fails to fulfil its part of the agreement, Iran can take legal action and potentially fine Pakistan up to $18 billion.
However, as of yet, there have been no credible news reports or official statements from either country’s government announcing such a fine. Therefore, Soch Fact Check concludes that Iran has not imposed a fine of 18 billion on Pakistan and that the claim appears to be false.
Virality:
The claim was posted here, here, here and here on X.
It can also be found here, here, here and here on Facebook.
Conclusion: There are no credible news reports or official statements from either country’s government announcing that Iran has imposed any fines on Pakistan for the Iran-Pakistan gas pipeline project. On the contrary, the Ministry of Energy officially confirmed Pakistan’s decision to commence construction on a segment of the pipeline in February, demonstrating progress in the economic relations of the neighbouring countries.
Background photo by: Sina Drakshani
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