PHOTO: FILE
The warning came a day after Pakistan's oil minister, Shahid Khaqan Abbasi, said work on the pipeline was not possible because of sanctions imposed by the United States and the European Union on Tehran over its controversial nuclear drive.
"Iran has carried out its commitments ... and expects the Pakistani side to honour its own," the deputy oil minister, Ali Majedi, said in a statement seen by AFP.
"They should even pick up the pace of work and make up for falling behind schedule" in constructing Pakistan's 780-kilometre (485-mile) side of the pipeline, he said.
Iran, which has the world's second largest gas reserves, says work on its side in the $7.5-billion project launched in 2010 is almost finished.
But the project's fate has faced uncertainty, with Pakistan repeatedly running into problems, including major financing issues, while being pressured by the US.
On Tuesday, Abbasi told AFP that the work on the pipeline "is affected by the sanctions imposed" on Tehran. He did not elaborate on how the sanctions could derail the project.
In Tehran, Majedi rejected the argument, saying the issue of sanctions was not a new development.
"Pakistan faced pressure at the time of signing the deal," he said. "But fully aware of the situation and the issue of sanctions, it still signed the contract."
Majedi added that the option of "bringing in a third party to finish the pipeline" had been raised in recent negotiations with Pakistani officials.
He did not elaborate.
Iran's Oil Minister Bijan Zanganeh said in late October he had "no hope" for the project, after Islamabad asked Tehran for $2 billion in financing to build its side of the pipeline.
That request was denied by Iran.
Iran currently produces nearly 600 million cubic metres of gas per day, almost all of which is consumed domestically.
Its only foreign client is Turkey, which buys about 30 million cubic metres of gas per day.
Pakistan is struggling with a severe gas crisis, with natural gas supplies running out in winters, forcing consumers to rely on liquid gas cylinders.
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@Lt Col Imtiaz Alam(retd): Such a weak answer from a retired Lt. Col.! I am shocked. What guarantee is that Saudi Arabia will not stop our oil if we don't agree to its hegemony. If we support the justified demonstrators of Qatif (Saudi Arabia), Bahrain, and Qatar, you will see how ugly our relations with the Saudis will become. Atleast Iran has a people's government after a revolution whereas these gulf monarchies are installed puppets. Their governments are artificial and they will fall soon. It will happen, even if we have to wait 10 more years.
@Lt Col Imtiaz Alam (retd): ".... Iran is not a dependable Ally. What guarantee is that in a conflict with India it will not shut off the Gas?" Starving to death, due to lack of gas, is more likely before that. And in any conflict with India, gas will be the least of Pakistan's problems! Intelligence is one thing that does not get consumed with use - may be useful to remember that.
Was the agreement signed before or after the imposition of sanctions? The Pakistani government goes about its business worse than a local trader. After this, who is going to trust any agreement with Pakistan? If things continue like this, the government of Pakistan will require an international guarantor before anyone signs an agreement with the government of Pakistan. We should salute the courage of Ex-President Asif Ali Zardari for signing this agreement. Pakistan had tremendous pressure even at that time but PPP Govt brushed aside everything.
In international commerce a signed agreement may not be violated for any reason, not even if a government comes to power that had been against the deal when in opposition. A nation's word is its bond, if it wants access to capital, to markets, and to services. Once again, Pakistan has demonstrated that it hasn't a clue as to the requirements for membership to the community of nations. Time and again, in its dealings with other countries, Pakistan has been uttering falsehoods as standard operating procedure. Even in politics bad faith is self-defeating, but in commerce it is fatal. And covering it with a further layer of defiance and untruths ....... ! Good luck, Pakistan!
@Satti:
I know, but still the position we are in I think it is suffice to say that we could squeeze one or two favors if we have played our cards right.
regards,
@Asad Khan:
they had a deal before the sansactions...!!!
@s: Sansactions have failed in which world do you live...Iran has surrendered and gave away its Nuclear Project....!!!! Which news to you read..Iran times..
Ahhh - Pakistan being friendly as usual with it's neighbors.
@ lt col Imtiaz Alam: What support did Pakistan get from its dependable friends & allies during Kargil war? "Iran has high relation with US"? Thats a news. What about US & Pakistan? Is Pakistan an ally of US? Is Saudi an ally of US? Is Israel an ally of US? Pakistan is china's buddy and both have many unresolved issues with India but china and India have excellent business relations and practically no business relations between India and Pakistan. What i mean to say is that if there is a will, there is a way.
@Raj - USA: Iran is not a dependable Ally. What guarantee is that in a conflict with India it will not shut off the Gas. It is on High Reation with India & US.
@qbc:
Simple, we aint Turkey.
regards,
@s: Have you talked to Iranians because I have spoken to many - especially young people. Everyone I speak to describes an overall miserable state and yes there are no medicines available which is why people are crying about the health of their loved ones. You don't need to watch any news channels to see the runaway inflation and devaluation of Iranian currency. At it's worst, it dropped in value over 25 % in one week! Incidentally most observers have said that Iran gave in to Western demands to have their nuclear facilities inspected and swear against developing nuclear weapons precisely because sanctions have been working - that's what made the Iranians so eager to give concessions at the recent talks. Frankly, you need to understand that a majority of people in Iran itself seem to want regime change - this is not from US sources but from independent European analysts; Iranians are long tired of the theocratic regime which is what most Iranians say. It seems anyone who gets the chance is keen on leaving Iran. So my point stands, why should Pakistan want to be in the same boat?
One question for all my pakistani brothers and sisters why turkey can buy gas from iran (since a number of years) but pakistan can't.
Why are we so scared of saudi and usa.
@sterry: "Iran is reeling under sanctions with no medicines; horrible inflation and a collapsing economy. Talk to any Iranian and they say the country is imploding under the strains."
Have you talked to an Iranians? Looks like you are quoting from Fox news.
The current talks between the US and Iran are taking place precisely because the sanctions have failed. You guys expected regime collapse over a year ago. Hasn't happened because the Iranians have a strong domestic market too. Also your allies can't hold the line. China and the Europeans in particular love to do business with Iran.
It is a very sad matter that due to pressures this pipeline project will fail :(
“Iran has carried out its commitments … and expects the Pakistani side to honour its own,” . Hard to argue with that. One should ask why Zardari entered into this agreement after being advised by the USA that sanctions would apply? Another case of Pakistan "chest thumping" where the nation united and ego's soared - but now your stuck with fines and a sore chest.