ISLAMABAD - Pakistan and Iran have reached an understanding to pay Iranian dues of $500 million through the cost of gas after the commissioning of Iran-Pakistan Gas Pipeline Project.
Reliable sources in the highest corridors of the Petroleum Ministry confided to The Nation that the two sides discussed in detail the finances involved in the mega $1.5 billion Iran-Pakistan Gas Pipeline Project, mode of payment, terms and conditions of the loan, interest rate, cost of laying one kilometre pipeline that includes bridges, compressor stations etc and the mode under which Pakistan would pay to Iran that has offered $500 million to help complete the project.
The project to be completed by December 2014 will first bring 750 million cubic feet gas per day through 781-kilometre-long pipeline with a diameter of 42 inches. Later, the gas flow will increase to one billion cubic feet per day.
The deputy chief of Tadbir Company headed the Iranian delegation and the Ministry of Petroleum and Natural Resources secretary led Pakistan side which also included managing director of the Inter-States Gas Systems (ISGS) and senior officials of the finance and law ministries.
It merits mentioning here that cost of laying the pipeline in Pakistan’s territory stands at $1.5 billion of which $500 million will be provided by Iran and the remaining amount will be arranged by Pakistan itself.