Pakistan’s National Grid Company (NGC) has urged the federal government to step in and help settle a long-standing $3.65 million payment dispute with Iranian engineering firm GAM ARAK — a case tied to an international arbitration ruling that remains unpaid five years on.
According to internal correspondence dated July 17, 2025, NGC recommended that the issue be taken up by the Prime Minister’s special committee working on the Iran–Pakistan Gas Pipeline project, viewing it as an existing diplomatic channel that could also handle this commercial dispute.
Arbitration Win Still Unenforced
The payment stems from a 2020 decision by the International Chamber of Commerce (ICC) in Arbitration Case No. 2272412F IAYZ. An addendum to the award was issued later that year, but despite repeated follow-ups, GAM ARAK has not complied. The amount, including accrued interest, has now reached roughly $3.658 million as of June 30, 2025.
NGC’s legal team has been exploring both domestic and international enforcement options but believes a negotiated settlement would better protect Pakistan’s commercial and diplomatic interests.
Diplomatic Routes on the Table
At a recent meeting, the company’s Chief Law Officer noted encouraging signals from the Iranian Embassy in Islamabad, which has pledged to raise the matter with GAM ARAK through Iran’s Chambers of Commerce. NGC has also proposed using Iran’s state-owned power utility, TAVANIR, as a formal intermediary, alongside direct engagement by Pakistan’s embassy in Tehran.
These steps, NGC says, could help exert the necessary pressure on the company to honor the award without escalating the dispute to a more contentious legal battle.
Gas Project Committee Seen as Key Platform
The state-owned utility believes the Prime Minister’s committee on the Iran–Pakistan Gas Project — already dealing with complex bilateral negotiations — could serve as a ready-made forum for resolving this matter. Leveraging ongoing energy sector talks, officials say, might encourage GAM ARAK to settle the debt promptly.
NGC has formally requested continued cooperation from Iranian diplomats, expressing optimism that sustained engagement will lead to payment and bring the dispute to a close.
