Cabinet committee okays $1.5b for IP gas pipeline

ISLAMABAD - Federal cabinet’s committee Friday approved $1.5 billion financing for much awaited Iran-Pakistan gas pipeline project, sources said.The sources privy to the development informed TheNation that a meeting of federal cabinet’s committee formed for the financing of Iran-Pakistan gas pipeline project was held under the chair Saleem Mandviwala. During the meeting, Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain and MD Inter State Gas System (ISGS) Mubeen Sulat briefed the meeting about five days long talks. The committee has given its approval to $1.5 billion financing of the project and also allowed to ink an agreement with neighbouring Iran to get $500 million loan to materialize the much-awaited gas pipeline project while the Government of Pakistan (GoP) would arrange $1 billion financing for the IP gasline project. Ministry of Petroleum and Natural Resources also informed the cabinet committee that finance ministry has already deposited Rs60 billion under the head gas infrastructure development cess while more Rs40 billion would be deposited within one year. –AHMAD AHMADANI

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