Payment of arbitral award sought by NGC regarding unsettled matter with Iranian company
The National Grid Company (NGC) of Pakistan is actively seeking a resolution to an outstanding arbitral award payment of approximately $3.658 million from Iranian company GAM ARAK. This amount, as per an International Chamber of Commerce (ICC) arbitral award dated April 21, 2020, with an addendum on July 28, 2020, has yet to be paid despite repeated reminders and negotiation efforts[1].
In an attempt to resolve this issue, the NGC has proposed the use of an existing committee associated with the Iran-Pakistan Gas Project. This committee, aimed at out-of-court settlements, will leverage several avenues[1]:
- Diplomatic engagement through Iran’s national energy company TAVANIR.
- Government-to-government dialogue facilitated by the Embassy of Pakistan in Tehran.
- Pressure via Iran’s Chambers of Commerce to encourage GAM ARAK’s compliance.
- Coordination with the Iranian Embassy in Islamabad, which has expressed commitment to engage GAM ARAK.
The Prime Minister’s notified committee on the out-of-court settlement under the Iran-Pakistan Gas Project could present additional avenues to foster mutual cooperation and facilitate settlement outcomes[1].
Parallel communications through the Iranian Embassy in Islamabad and other diplomatic channels, including the Iranian Chambers of Commerce, have been recommended to maximize outreach and pressure for compliance[1]. The NGC is backed by legal counsel and remains committed to safeguarding national and public interests through continued engagement focused on a negotiated settlement.
The dialogue with TAVANIR is aimed at fostering cooperation and compliance with the arbitral decision. The Iranian Embassy in Islamabad has given assurances to engage GAM ARAK via the Chambers of Commerce in Iran[1]. The Chief Law Officer of the NGC has requested the Iranian embassy's continued coordination on this matter, expressing confidence that its engagement will promote constructive dialogue, encourage GAM ARAK’s compliance, and secure a timely resolution beneficial to all parties concerned[1].
The issue concerns a foreign arbitral award rendered in favor of the NGC against GAM ARAK Industrial Co[1]. As of June 30, 2025, the total amount due - including accrued interest - stands at approximately $3.658 million[1]. The NGC has provided a detailed summary of the final award amount, which is Rs 885,300,369 and $ 3,116,158, with a cumulative amount, including delayed payment, of Rs 1,039,378,822 and $ 3,658,496[1].
[1] Source: NGC press release dated June 30, 2025.
- In an effort to secure a timely resolution, The National Grid Company (NGC) is exploring various avenues, including engaging Iran's private sector through its Chambers of Commerce, to apply pressure on GAM ARAK to comply with the arbitral award.
- To safeguard national and public interests, the NGC is working with government agencies, such as the Prime Minister’s notified committee and the Iranian Embassy in Islamabad, to foster cooperation and comply with the arbitral decision. The accrued interest of approximately $3.658 million, as per the International Chamber of Commerce (ICC) award, remains a significant concern.
