The multi-billion-dollar Pakistan-Iran gas pipeline project remains alive but is currently facing international arbitration as Islamabad weighs massive infrastructure costs against alternative energy imports, Pakistan’s petroleum minister said.

Petroleum Minister Ali Pervaiz Malik stated that the government is actively exploring avenues to advance the long-delayed project despite ongoing legal hurdles.

Speaking during a televised interview with ARY News, Malik noted that while the pricing of Iranian gas is closely comparable to liquefied natural gas (LNG) imported from Qatar, infrastructure readiness remains the decisive factor for Pakistan's energy strategy.

"In the case of Iranian gas, Pakistan would have to invest billions of dollars in laying pipeline infrastructure, which would significantly increase the overall cost of the project," Malik said.

In contrast, the minister pointed out that Pakistan has already fully developed the necessary infrastructure to handle Qatari LNG imports, making it a more immediate and cost-effective solution for the country’s current energy grid.

The pipeline project, conceived to help Pakistan combat its chronic energy shortages, has faced decades of delays, largely driven by the threat of international sanctions related to Iran's nuclear program.

The dispute over the unfinished pipeline has now escalated to an international arbitration court, where Iran has previously threatened to impose multi-billion-dollar penalties on Pakistan for failing to construct its side of the pipeline.

Malik declined to comment extensively on the specific legal proceedings but expressed optimism about a potential breakthrough outside the courtroom. Referencing Pakistan's diplomatic involvement following recent regional conflicts, the minister indicated that geopolitics might pave the way for an amicable resolution.

"We will try to resolve the matter through negotiations and achieve a win-win outcome for all parties concerned," Malik said, adding that he hopes both nations can ultimately reach an out-of-court settlement.