Iran, Pakistan make progress on IP gas project: Rabbani Khar
Pakistani Foreign Minister Hina Rabbani Khar says Iran and Pakistan have made progress in building a multi-billion-dollar gas pipeline, despite illegal US-engineered sanctions.
Addressing a National Assembly session on Monday, the Pakistani minister added that Islamabad faced a “huge challenge” to fund the Iran-Pakistan (IP) gas pipeline.
She emphasized that Pakistan required USD1.5 billion to build the 781-kilometer pipeline needed for the implementation of the project on its soil.
The foreign minister stated that her country is holding talks with Tehran to find ways to “solve the financial constraints.”
The pipeline, projected to cost about USD 1.2-1.5 billion, would enable the export of 21.5 million cubic meters of Iran’s natural gas to Pakistan on a daily basis.
Iran has already built more than 900 kilometers of the pipeline on its soil.
The Express Tribune reported on January 10 that Iran and Pakistan have devised a plan to finance the gas pipeline on Pakistan’s side without the need for Islamabad to transfer funds to Tehran.
The report came a day after the board of directors of the Pakistani Inter State Gas Systems (ISGS) announced that Tehran will grant a USD500-million loan to Tehran-based Tadbir Energy Development Group.
In the first phase, Iran will lend USD250 million and extend the assistance later to USD500 million.
The proposal will be submitted to the Economic Coordination Committee of Pakistan’s Cabinet for approval.