Pakistan hires top law firm to avoid $1.8 billion penalty in Iran gas pipeline project

In this file photo, Iranians work on a section of a pipeline after the project was launched during a ceremony with presidents of Iran and Pakistan on March 11, 2013 in the Iranian border city of Chah Bahar. (AFP)
Updated 01 August 2019
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Pakistan hires top law firm to avoid $1.8 billion penalty in Iran gas pipeline project

  • French law firm Gide Loyrette Nouel will provide legal assistance to Islamabad
  • Pakistan is bound to pay a daily penalty of $1 million to Iran starting from January 1, 2015 under a penalty clause of the bilateral agreement

ISLAMABAD: Pakistan has hired a French law firm to explore legal options to deal with Iranian threat of moving international court against Islamabad for its failure to execute the Iran-Pakistan gas pipeline project and find out a way if the project can be completed without attracting the US sanctions, a top official at Ministry of Energy said on Tuesday.
The US has steadfastly opposed Pakistan's involvement in the $7 billion project, saying it violates the sanctions imposed on Iran. 
Under an agreement signed between the two countries in 2009, the project was to be completed by December 2014 and would deliver 21.5 million cubic meters (760,000 million cubic feet) of gas per day to Pakistan. It was to be constructed using a segmented approach – Iran had to lay down the pipeline on its side and Pakistan was supposed to build the pipeline on its soil.
Tehran formally issued a notice to Islamabad in February this year, saying it was moving an arbitration court against Pakistan for failing to lay down the pipeline in Pakistani territory in the time-frame stipulated in the bilateral agreement. Since then, Pakistan has been exploring different legal and diplomatic options to avoid litigation.
“We are analyzing the overall international situation regarding Iran and studying Tehran’s position over the gas pipeline project through an international law firm,” Sher Afgan Khan, additional secretary at Ministry of Energy, told Arab News.
Pakistan has hired the French law firm, Gide Loyrette Nouel, to study the deal and prepare a legal response to Iran’s position that the US sanctions do not impact its gas import trade. In May this year, Pakistan had informed Iran in writing that it cannot execute the project as long as Tehran is under a US sanctions regime.
“We are trying our best not to violate [the US] sanctions ….. we are already on the FATF’s [Financial Action Task Force] grey-list,” Khan said referring to Pakistan’s formal placement on the FATF’s grey-list in June last year.
The Trump administration has warned countries around the world to stop buying Iranian oil or face sanctions of their own. Washington’s European allies have tried and failed to come up with ways to blunt the economic impact of the US move. The US sanctions against Iran are a major hindrance for most gas pipeline projects in the region.
But Pakistan is caught in a catch-22 situation over the deal. Under a penalty clause, Pakistan is bound to pay $1 million per day to Iran from January 1, 2015 for failing to build its part of the pipeline. If Iran takes the case to an arbitration court, Pakistan will likely have to pay around $1.8 billion in penalty.
Additional secretary Khan said, “Negotiations are in progress to settle the issue amicably” with Iran, adding that "Iran understands our position." 
About the deadline of completion of the legal consultation process with the French law firm, he said: “It is not very extensive and expected to be completed soon.”


Pakistan reiterates 'unwavering' support for Palestinians' right to self-determination

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Pakistan reiterates 'unwavering' support for Palestinians' right to self-determination

  • The statement comes on International Day of Solidarity with Palestinian People that aims to grant sovereignty to Palestinians
  • PM Shehbaz Sharif calls on international community to act 'decisively' to impose immediate halt to Israel's atrocities in Gaza

ISLAMABAD: Pakistan's Prime Minister Shehbaz Sharif on Friday reiterated his country's "unwavering" support for the Palestinians' right to self-determination, Sharif's office said, on the occasion of the International Day of Solidarity with the Palestinian People.
The International Day of Solidarity with the Palestinian People is a UN-organized observance, with events held at the United Nations (UN) headquarters in New York and its offices in Geneva, Vienna and Nairobi.
In a statement issued from his office, Sharif said the last one year marked a "deeply disturbing moment" in the history of Palestine in the wake of Israel's brutal aggression in Gaza and the West Bank since October 7, 2023 attacks by Hamas.
"The Palestinian people have been bravely enduring a campaign of unending genocidal violence with indiscriminate attacks, ethnic cleansing, and collective punishment that constitute a flagrant violation of human dignity, human rights, and international law," he said.
"On behalf of the people of Pakistan, I reaffirm our complete solidarity with the valiant and resilient Palestinian people. We will continue to stand by you in your just and rightful pursuit of peace, dignity, and right to self-determination."
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters.”
Since the beginning of Israel’s war on Gaza that has claimed over 43,000 lives, Pakistan has repeatedly raised the issue at the UN, the Organization of Islamic Cooperation (OIC) and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza. The South Asian country has also dispatched several aid consignments for the Palestinians.
Sharif said Israel's violations of international humanitarian law had crippled the humanitarian response in Gaza, calling on the international community to act "swiftly and decisively" to impose an immediate halt to Israel's atrocities, including indiscriminate attacks on civilians, hospitals, schools, and critical infrastructure.
"The repeated assaults on humanitarian aid convoys and essential services are unconscionable. The failure to hold Israel accountable for these grave war crimes and violations of human rights will perpetuate the impunity, with which Israel has unleashed its destruction in Gaza, the West Bank and Lebanon," he said.
"Pakistan further calls for an immediate and unconditional ceasefire in Gaza and stresses the urgency of ensuring unhindered humanitarian assistance to the Palestinian people."


Family calls off weeks-long protest in Balochistan over kidnapping of schoolboy

Updated 19 min 37 sec ago
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Family calls off weeks-long protest in Balochistan over kidnapping of schoolboy

  • Muhammad Musawir Khan, who comes from a family of gold traders, was kidnapped by armed men in Quetta on Nov. 15
  • The protest was called off after the Balochistan chief minister met Khan’s relatives and assured them of his safe recovery

QUETTA: The family of an 11-year-old schoolboy, who was kidnapped in Pakistan’s Balochistan province earlier this month, has called off their weeks-long protest in the provincial capital of Quetta, it said on Thursday, following assurances from the provincial administration for a safe recovery of the child.
Muhammad Musawir Khan, a third-grade student, was kidnapped from a school van by unknown armed men while on his way to school in Quetta on November 15. His family says they have not received any ransom call from the kidnappers since his abduction.
Khan’s relatives and other protesters had been staging a sit-in at Quetta’s Unity Square for the last 14 days. On Thursday, Balochistan Chief Minister Sarfaraz Bugti met the protesters and assured them of setting up a team to recover the kidnapped boy.
“Bugti told us that ‘a joint investigation team has been formed comprising all Law Enforcement Agencies (LEAs) for the safe recovery of the kidnapped boy’,” Khan’s father, Raz Muhammad, told Arab News, adding that they had called off the protest for ten days.
The kidnapped boy belongs to a prominent tribal family that has been involved in the gold trading business in Balochistan for decades. According to the family, he was abducted from the busy Patel Bagh neighborhood in Quetta.
On Monday, a wheel-jam strike over the kidnapping paralyzed highways in Balochistan, with political and religious party leaders, traders, transporters, lawyers and civil society members visiting the protest camp to express solidarity with the family.
Speaking to the protesters on Thursday, CM Bugti said the kidnapped boy’s family was being regularly updated about the details of investigation.
“The entire province is standing with the family and a safe recovery of Muhammad Musawir Khan is our duty,” he said. “We will not commit any negligence in our duty.”


Pakistan’s 21st consignment of relief items for Gaza, Lebanon and Syria arrives in Damascus

Updated 28 November 2024
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Pakistan’s 21st consignment of relief items for Gaza, Lebanon and Syria arrives in Damascus

  • Pakistan dispatched 17 tons of relief items such as blankets, food and medicines on Wednesday
  • Islamabad has repeatedly demanded an unconditional ceasefire in Gaza amid Israel’s aggression

ISLAMABAD: Pakistan’s 21st consignment of relief items for the war-affected people of Lebanon, Gaza and Syria landed in Damascus on Thursday, the National Disaster Management Authority (NDMA) said. 

Pakistan dispatched the consignment from the eastern city of Rawalpindi to Damascus on Wednesday. The relief items, sent with the help of the Pakistan Air Force, comprised 17 tons of supplies which included blankets, food and medicines. 

Israel has been attacking what it calls Iran-linked targets in Syria for years but has ramped up such raids since the Oct. 7, 2023, attack by Hamas on Israel, leading Israel to launch a military campaign in which more than 44,000 Palestinians have been killed in Gaza and more than 3,500 people in Lebanon.

“The 21st consignment of humanitarian aid for war affected/displaced people of Palestine Gaza and Lebanon has successfully landed in Damascus, which flew yesterday from the Nur Khan Base via a chartered flight, carrying 17 tons of relief items by GoP/Pak NDMA,” the authority said in a statement. 

It said the consignment was received by Air Marshal (retired) Shahid Akhtar, Pakistan’s ambassador in Damascus. 

“The Government of Pakistan remains steadfast in its commitment to providing humanitarian assistance to the war-affected people of Palestine (Gaza) and Lebanon,” the NDMA said. 

Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.


Balochistan Assembly passes resolution seeking ban on Imran Khan’s party after violent protests

Updated 28 November 2024
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Balochistan Assembly passes resolution seeking ban on Imran Khan’s party after violent protests

  • Tabled by PPP and PML-N parties’ lawmakers, resolution accuses Khan’s party of spreading chaos in the country
  • Government says clashes between Khan supporters and law enforcers led to the killing of three troops and one cop

QUETTA: Provincial lawmakers in the Balochistan Assembly on Thursday approved a resolution seeking an “immediate” ban on former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party following its violent clashes with law enforcers in the capital this week. 

Pakistan’s government said three Rangers personnel and a police officer were killed during clashes between thousands of Khan supporters and law enforcers this week when the PTI led a “long march” to the capital to demand Khan’s release, among other things. 

The protesters were dispersed after a late-night raid on Wednesday, after which the PTI said at least 20 of its supporters had been killed after being shot by law enforcers. The government denies this while police says it has arrested over 1,151 protesters. 

Lawmakers of the PTI’s political rivals Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) tabled a joint resolution, calling on the federal government to ban Khan’s party. These lawmakers included Meer Saleem Khosa, Muhammad Sadiq Umrani, Asim Kurd Gelo, Raheela Hameed Durrani, Bakht Muhammad Kakar, Hajji Wali Noorzai and Barkat Ali Rind. 

“This august house of the Balochistan Assembly calls upon the federal government to impose an immediate ban on the PTI for spreading chaos in the country, and for attempting to make the armed forces of Pakistan and security forces fight with the people,” a copy of the resolution seen by Arab News said. 

The resolution accused the PTI of being involved in violent activities in the country, saying it has adversely affected the country’s economy.

“Attacking the capital with provincial machinery and resources was a clear proof of the non-political agenda of a political party,” Khosa said while presenting the motion. 

Opposition parties such as the National Party (NP), Jamat-e-Islami (JI) and Jamiat Ulema-e-Islam Pakistan Fazl (JUI-F) opposed the resolution and its lawmakers walked out in protest during the session. 

Alam Kakar, a leader of the PTI’s Balochistan chapter, rejected the resolution.

“Let them (center) enjoy this decision but Pakistan Tehreek-e-Insaf is Imran Khan’s party and whatever name Khan would give to this party, the Pakistani nation would stand by him,” Kakar told Arab News. 

“The provincial government should focus on maintaining the law and order situation in Balochistan rather than bringing such an absurd resolution,” he added. 

Younus Aziz Zehri, an opposition leader in the Balochistan Assembly, told Arab News that the opposition parties strongly opposed the resolution.

“If today we ban the PTI, tomorrow it could be us or the PML-N or the PPP any political party in power would ban its opponents,” he said. 

“We strongly condemn the killings of civilians and security personnel during the violence by the state and protesters in Islamabad, but that doesn’t justify that you should ban that political party led the protests in Islamabad,” Zehri added. 

Pakistan’s government has said that the protests caused economic losses worth $684 million per day, describing them as deliberate attempts by the PTI to harm the country’s economy.


Pakistan welcomes ceasefire announcement between Israel and Lebanon’s Hezbollah

Updated 28 November 2024
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Pakistan welcomes ceasefire announcement between Israel and Lebanon’s Hezbollah

  • Israel approved ceasefire agreement with Hezbollah on Tuesday after nearly 14 months of fighting
  • Pakistan’s premier hopes ceasefire leads to permanent cessation of hostilities between two sides 

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Thursday welcomed the ceasefire announcement between Israel and the Iran-backed Hezbollah group, hoping it would culminate in a permanent cessation of hostilities between the two sides. 

Israel approved a ceasefire agreement with Lebanon’s Hezbollah group on Tuesday that halts nearly 14 months of fighting linked to the war in Gaza. 

The ceasefire, which came into effect on Wednesday, marked the first major step toward ending the regionwide unrest triggered after Hamas’ attack on Israel on Oct. 7, 2023. However, it does not address the devastating war in Gaza, where Hamas is still holding dozens of Israeli hostages and the conflict is more intractable. 

“We welcome the announcement of ceasefire between Israel and Lebanese group Hezbollah,” Sharif wrote on social media platform X. 

“And hope that the announcement leads to a permanent cessation of hostilities in Lebanon.”

Sharif wished peace and security for the people of Lebanon. 

Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.

Since October last year, Pakistan has dispatched 21 consignments of relief items such as food and blankets for the war-affected people of Gaza, Lebanon and Syria. 

Islamabad does not have diplomatic relations with Israel and has consistently accused it of committing genocide in Gaza. Pakistan calls for an independent Palestinian state with Al-Quds Al Sharif as its capital.