Iran Agrees to Finance Iran-Pakistan Gas Pipeline

Pakistan and Iran have agreed to sign a $250 million loan agreement next month for laying Pakistan's portion of the pipeline, The Express Tribune reported Thursday.

Iran has also offered an additional loan of $250 million from its commercial banks for the pipeline. Tehran will also provide material support.

According to sources, Iran will provide a total of $500 million to finance the gas pipeline and the remaining amount will be arranged by Pakistan through collection of gas infrastructure development process, a kind of tax being paid by domestic gas consumers.

Under the project, Iran will supply 750 million cubic feet of gas per day (bcfd) to energy-deficient Pakistan. The volume can be enhanced to 1 bcfd later.


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