Pakistan Wants Iran to Fully Finance IP Gas Pipeline

Pakistan has asked Iran to completely finance the Iran-Pakistan gas pipeline as US sanctions may hamper Pakistan from financing, Express Tribune said.

Petroleum Minister Shahid Khaqan Abbasi told media that the government would continue work on the IP gas pipeline and “we will discuss the project with the new Iranian cabinet for seeking the entire financing.”

Iran had committed to the previous PPP-led government a loan of $500 million for laying the pipeline in Pakistan, which would cost more than $1 billion, Tribune said.

The two governments also agreed to award construction contract to Iranian firm Tadbir Energy. However, the contract could not be signed in the absence of sovereign guarantees by Pakistan.

Iran was facing sanctions and the Foreign Office had been asked to assess the impact of US curbs on the project, the newspaper quoted the minister as saying.