By NNN-IRNA,
Islamabad : Iranian FM Ali-Akbar Salehi who will lead a delegation at the September Pakistan-Iran Joint Economic Commission’s meeting, is likely to offer Iran’s help in building of the Pakistani portion of the gas pipeline to Pakistan, an Iranian diplomat has been quoted as saying.
The offer will raise hopes for the timely completion of the multi-billion dollar Iran-Pakistan (IP) project, which will enable Pakistan to meet the fast growing energy crisis.
According to a tender floated by Pakistani government last month, a total of 781 kilometer 42-inch diameter would be laid along the southwestern Balochistan coastline up to Nawabshah district in southern Sindh province from where it will be linked to the national gas transmission network.
Under the current plan, the project will be funded through public-private partnership and the capital cost for the Pakistan section is estimated at $1.65 billion.
The nearly $7.5 billion project is likely to deliver gas to Pakistan by mid-2014, according to Pakistan and Iranian officials.
The multi-billion gas pipeline project will be one of the main items on the agenda for the two-day 18th Pakistan-Iran Joint Economic Commission meeting, the diplomat said.
The diplomat, requesting not to be identified, said that Iran’s offer to help Pakistan to build pipeline on its side is aimed at avoiding any delay, which can also lead to a penalty.
Iranian Ambassador to Islamabad Masha’Allah Shakeri said last week that the two sides are scheduled to discuss mutual cooperation in the oil, gas and power sectors as well as discussing issues related to their joint investment companies.
Finance Minister Dr Abdul Hafeez Shaikh would lead Pakistani delegation at the Joint Commission meeting.
Salehi is likely to call on President Asif Ali Zardari, Prime Minister Yusuf Raza Gilnai and hold a meeting with Foreign Minister Hina Rabbani Khar, official sources said. They will review regional matters including Afghanistan.
Pakistan and Iran have shown interest for China’s joining the project, also called as peace pipeline. The gas will be supplied from the South Pars field. The initial capacity of the pipeline will be 22 billion cubic meters of natural gas per annum, which is expected to be later raised to 55 billion cubic meters.
The Iranian diplomat said the Iranian side would also propose direct flights between the capital cities of the Islamic republics. There are no Islamabad-Tehran direct flights at present. There are currently flights to Iran from Lahore and Karachi.
Iranian delegation will float proposals to enhance the present $ 01 billion to four billion dollars bilateral trade by 2014, the diplomat said.
Both sides are expected to sign cooperation agreements in economic, media and medicines, he said.
Several key areas have been identified to promote bilateral cooperation that include agriculture, energy, infrastructure building, transportation, shipping, culture and tourism, economic and banking, trade, mining, and communication. Six bilateral committees will hold talks on the sidelines of the meeting to explore ways for cooperation in these areas, he said.