Press TV: Pakistan loses ground to India in Iran ties
On December 14, Iran announced that it had suspended a 250-million-dollar loan to Pakistan to build a part of the Iran-Pipeline project, which will allow Pakistan to import 21.5 million cubic meters (mcm) per day of Iranian natural gas to satisfy its growing energy needs.
Deputy Oil Minister Ali Majedi told Pakistani officials that, due to sanctions, Iran was not in a position to finance the construction of a pipeline in another country. He advised the Pakistanis to get help from third-party companies, especially European firms.
The Iranian official complained that Islamabad had done little to construct its own section of the pipeline.
“If a contractor is chosen today and pipeline construction begins today, it will take four years to complete it,” said Majedi, adding that if Pakistan fails to import the gas by the end of 2014, Iran will demand compensation under the terms of the contract.
Majedi dismissed the Pakistani allegation that the anti-Iran sanctions were causing hindrances in the construction.
“Such remarks are unacceptable and Pakistan is expected to meet its obligations in this contract,” Majedi said.
Iran has already built more than 900 km of the pipeline on its territory but Islamabad has so far failed to look for the required funding for the project, due to the threat of sanctions from the US, even though the pipeline agreement stipulates that Pakistan must finish its side of the facility by December 2014. MORE