Pakistani Official Says Country's Economic Progress Depends on Iranian Gas

Pakistan’s economic progress is dependent on gas imports from Iran, economic adviser to country’s ministry of finance Sakib Sherani said.

“Given the nuclear agreement struck between Iran and the six world powers, Pakistan should act decisively in finalising the construction of the multi-billion-dollar gas pipeline project on its side of the border with Iran to be able to supply its energy needs,” Sherani said on Monday, reports FARS News Agency.

Pakistan is looking to import gas through much delayed Iran-Pakistan (IP) pipeline. The two countries signed the pipeline project deal way back in 1995. Later, Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, an accord between Iran and India was signed. However, India withdrew from the project due to security concerns.

Iran has already built 900 kilometers of the pipeline on its own soil and is waiting for the 700-kilometer Pakistani side of the pipeline to be constructed. The Iran-Pakistan pipeline project has been much delayed due to western sanctions imposed on Tehran. As per the agreement between the two nations signed in 2009, the first flow of gas to Pakistan should have started by Dec 31, 2014.

Pakistan will now look to expedite the construction of pipeline on its soil, especially now that Iran and the world powers have struck a final deal.