Anonymous donor: ‘Friendly’ country offers $1b for Iran-Pakistan pipeline

Published: November 28, 2013

Govt seeks to renegotiate gas price, construction contract in talks with Tehran. PHOTO: AFP/FILE

ISLAMABAD: 

A friendly country has offered $1 billion in assistance for building the Iran-Pakistan gas pipeline and the financing may be acquired after Tehran inks a nuclear deal with western powers, officials say.

Only top government leadership and the Foreign Office know about the financing offer, but the friendly country’s name has been kept secret.

According to sources, since the Iranian offer for financing and constructing Pakistan’s segment of the pipeline looks expensive, the government is exploring the possibility of going for this alternative financial assistance. Iran has offered $500 million for the project.

They said the present government also wanted to renegotiate with Tehran the agreed gas price and the pipeline construction contract for Iranian firm Tadbir Energy.

When the petroleum ministry’s spokesman was approached for comments on the assistance proposal, he said they had no idea of any offer from a friendly country.

However, officials privately suggest that China may be the country which has shown interest in financing the gas pipeline. Earlier, during the tenure of the previous government, China had offered a loan of $500 million.

A Chinese firm, which had offered the loan, later pulled out of the project after Pakistan refused to extend the bid validity period.

Owing to fierce opposition from the US, former petroleum minister Dr Asim Hussain had taken an initiative to arrange funds for the pipeline from two sources. He won government’s approval to generate $1 billion through the Gas Infrastructure Development Cess, but later a court stopped its collection. Apart from this, Hussain sought financing from Iran, which agreed to extend $500 million.

Pakistan and Iran also initialed an inter-governmental agreement for releasing the funds and awarding the construction contract to Tadbir Energy, which had been designated by Tehran.

“Now, the present government wants to renegotiate gas pricing and the contract with Tadbir Energy during upcoming visit of Petroleum Minister Shahid Khaqan Abbasi to Tehran,” an official said. He is going on an invitation from Iran.

“During the trip, the possibility of Iran providing the entire financing will be discussed,” the official added.

Against the financing, Pakistan would award the engineering, procurement and construction contract to Tadbir Energy.

According to a report prepared by the petroleum ministry, if furnace oil-based power generation is replaced with imported gas, it will result in annual savings of $2.4 billion.

The incremental impact of the gas pipeline would be just 20% on the overall average gas basket price if 750 million cubic feet per day (mmcfd) was imported, it said.

Under the project, which is estimated to cost around $1.8 billion, Pakistan will import 750 mmcfd of gas, extendable to one billion cubic feet. Balochistan wants 250 mmcfd for consumption at the Gwadar Port and it is likely that the central government may opt for higher gas imports to meet the needs of the province.

Published in The Express Tribune, November 28th, 2013.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Reader Comments (81)

  • Grammarian
    Nov 28, 2013 - 12:36AM

    Obviously not Saudia Arabia, lol.
    Most likely Russia or China.

    Recommend

  • Asok
    Nov 28, 2013 - 12:39AM

    I am 100% certain this will turn out to be exaggeration.

    There is no reason why a country would want to keep such funding secret.

    Recommend

  • I K
    Nov 28, 2013 - 12:43AM

    Its UAE – Our True Friends

    Recommend

  • Karachiwala
    Nov 28, 2013 - 12:58AM

    ITS turkey,…..

    Recommend

  • weallknow
    Nov 28, 2013 - 1:23AM

    its china

    Recommend

  • Xnain
    Nov 28, 2013 - 1:35AM

    Thats China or Turkey. No other country can be so generous to Pakistan.

    Recommend

  • Xnain
    Nov 28, 2013 - 1:41AM

    And PTI fan club was saying that NS has erroded Pakistan’s credibility. Actions are talking louder than words! Take that trolls! :P

    Recommend

  • Stellar
    Nov 28, 2013 - 1:41AM

    The anonymous friendly donor can’t be any other than either Turkey or China.
    It is a surprise that Pakistan has so many friendly donor countries whop want to remain anonymous…a pleasant one.

    Recommend

  • Asad Khan
    Nov 28, 2013 - 1:51AM

    Anonymous donor!! hhmm,

    so far I am under the impression that “Anonymous(s)” only applied to the Hacking World.

    Well, anyway, thank you Anonymous for a generous loan, nice to have you along.

    regards,Recommend

  • Sall90
    Nov 28, 2013 - 1:58AM

    Iran or China. Rest are enemies one way or other.

    Recommend

  • Muhammad
    Nov 28, 2013 - 2:04AM

    Is this the Onion?

    Recommend

  • Muhammad
    Nov 28, 2013 - 2:19AM

    Is this the Onion? I hope this is real. Even though this pipeline isn’t the best deal Pakistan could get, I want Pakistan to have good relations with Iran or any neighboring country for that matter.

    Recommend

  • np
    Nov 28, 2013 - 2:27AM

    “They said the present government also wanted to renegotiate with Tehran the agreed gas price ”

    You want to use the fact that Iran refused to renegotiate as a way of getting out of the contract because Saudi Arabia does not want you to build the pipeline. Well, you signed a contract in March this year with penalty clauses if you do not start withdrawing gas starting Dec 2014. I don’t think any court of law in the world will accept failure to renegotiate as valid clause for contract cancellation without payment of penaltiesRecommend

  • Muhammad
    Nov 28, 2013 - 2:46AM

    @I K:
    It’s definitely NOT UAE lol. It’s either Turkey or China.

    Recommend

  • Raj - USA
    Nov 28, 2013 - 2:50AM

    Conspiracy theories and cooked up stories, is what Pakistan comes up with every day. Is it that China is afraid of USA and the sanctions that it wants to keep its financing the pipeline a secret? Looks more like an attempt to fool Iran. Pakistan wants Iran to remove the penalty clause for delay in construction or abandoning the pipeline. Pakistan also wants to renegotiate a better price if they opt to buy the gas. So, they want to convince Iran that they are sincere and also have the finances to build the pipeline.

    Recommend

  • weallknow
    Nov 28, 2013 - 2:50AM

    not turkey (fighting proxy war with Iran in Syria), not UAE (same pple who are disputing over islands in the gulf with Iran, and over the naming of the arabian gulf or persian gulf lolol),

    Its China, It is the only country with the depth, resources, manpower, strategic interest in the region and mountains of cash (trillions of usd) to finance something like this. Jeez.

    Recommend

  • shahid
    Nov 28, 2013 - 2:56AM

    Is it India? or Bangladesh or Afghanistan. Who ever it is thanks our best friend.

    Recommend

  • DAJ
    Nov 28, 2013 - 3:18AM

    @Xnain: Yes our credibility is very strong now so much that we’re getting billions from unknown people. I’m pretty sure that’s how a nations credibility and reputation is built- by the number of dollars it gets from anonymous sources.

    Recommend

  • abu salaam
    Nov 28, 2013 - 3:24AM

    probably china or russia. i doubt it is Turkey since they are close to the Saudis. Probably not any of the other arab countries (UAE, Qatar, Kuwait), as they would all like to see Iran collapse.

    Recommend

  • Nov 28, 2013 - 4:43AM

    Bangaladesh

    Recommend

  • azmat khan
    Nov 28, 2013 - 5:07AM

    Completion of this great project is must.It will benefit our country extensively.

    Recommend

  • polpot
    Nov 28, 2013 - 5:21AM

    Its India…..aman ki asha….
    ++++++++++++++++++++++
    if India can make a huge investement in Afghanistan why not in Pakistan?

    Recommend

  • Syed Imam
    Nov 28, 2013 - 7:14AM

    Go public and make it a Public-Private venture. You will be surprise Pakistani people (expatriates included) as well as foreigners will raise the money for the entire project in no time.But the venture has to be run as a business and by professionals.

    Recommend

  • Xnain
    Nov 28, 2013 - 7:57AM

    @DAJ:
    Dear Albert DAJ Einstein, you would have remembered that how even the donor agencies or China withdrew their assistance for Pakistan in the previous regime. You would have also known that how China quietly helped Pakistan with 800 Million Dollars few months ago when Pak Rupee was falling rapidly and we needed Dollar support. The donner is only going to help you if he has enough confidence that the money will be spent purposefully not transferred to the personal kitties.

    Recommend

  • Xnain
    Nov 28, 2013 - 7:59AM

    @polpot:
    India, Bungladesh……Interesting replies coming from the east……

    Recommend

  • Ali
    Nov 28, 2013 - 8:00AM

    Its had to be Israel.

    Recommend

  • Ghostrider
    Nov 28, 2013 - 9:20AM

    i think its Zimbabwe…the next super power of the world and leader of the NWO

    Recommend

  • Betel-Q8
    Nov 28, 2013 - 9:27AM

    @Grammarian:
    Since when Russia became a friendly country?

    Recommend

  • ptr
    Nov 28, 2013 - 10:40AM

    UAE and saudi-arabia are not our true friends, show some respect! they are our true masters’

    Recommend

  • Jibran
    Nov 28, 2013 - 10:48AM

    $1 billion… hmmm…. It can never be China. China is cheapskate when comes to spending money. In the aftermath of Cyclone in Philippines, it gave mere 1 million to its neighbor, resulting in a huge backlash, where the US committed more than 1000 times more.

    Recommend

  • Iqbal Ismail
    Nov 28, 2013 - 10:54AM

    Let me be a devil’s advocate. It is not China, It is not Turkey, It is not UAE. It is America. They are against using coal. They want a clean environment.

    Recommend

  • RUKHSAR
    Nov 28, 2013 - 10:56AM

    Its Only China dude!

    Recommend

  • S Shaikh
    Nov 28, 2013 - 11:06AM

    It’s got to be India

    Recommend

  • Bakhtiyar Ghazi Khan
    Nov 28, 2013 - 11:13AM

    Its pretty much confirmed to be China. Turkey is funding Pakistan’s economy already in different ways, and Russia has taken an interest in the project, but neither have committed to this particular project. UAE and Saudi Arabia are investing in Pakistan in different ways as well. Many nations have an interest to see a strong and vibrant Pakistan as it is in the interest of the wider Middle East and world peace.

    Recommend

  • Jibran
    Nov 28, 2013 - 11:13AM

    Another bluff by the Bluff Masters! How can someone give an anonymous loan without any paperwork, or a trail of money transfer?

    Recommend

  • Besharam Khan
    Nov 28, 2013 - 11:29AM

    it’s either Israel or India!!

    Recommend

  • PeaceMonger
    Nov 28, 2013 - 11:43AM

    I am about to disclose the identity of the ‘anonymous donor’.
    It’s….. INDIA !!

    Recommend

  • Aschraful Makhlooq
    Nov 28, 2013 - 11:47AM

    At least now Pakistan has to take three steps immediately without wasting any more time and without any fear and pressure from any where in any means and manifestation either hidden or open:
    1-Say farewell permanently to US,US’ aid and US’ aid’s dependence,
    2-Take the full advantage of US-Iran deal and reconciliation on nuclear matters and
    3-Must has to accept friendly country offer for Iran-Pakistan gas pipeline business
    So that Pakistan could get real and practical self-reliance,sovereignty,honor,grace,dignity and ego and most especially importantly to overcome severe electricity and gas crises in Pakistan so that Pakistan could stand on its own feet strongly and confidently…

    Recommend

  • namaloum afrad
    Nov 28, 2013 - 12:00PM

    Mars ?

    Recommend

  • Hi
    Nov 28, 2013 - 12:19PM

    I think it’s India. They’ll see if sanctions are placed on Pakistan and if not, they’d love to tap on it. It’s like give 1b but save billions later.

    It can not be China at any cost. Whatever the Chinese do, they make it public. Kind of like to show off. Can’t be any arab state since they like selling oil. Russia nope as it’d create controversy with USA. Turkey is already helping in other ways, but it’s be my second guess if turkey donated. Also India giving Pakistan help won’t be controversial when USA finds out since it wants to see the two foster healthy relationship ship and the oil pipeline deal is a small price for that.

    Recommend

  • Nadir Shah
    Nov 28, 2013 - 12:42PM

    It is either Syria or Libya ,Capital flight .

    Recommend

  • tania
    Nov 28, 2013 - 12:44PM

    forget who it is…What’s more important is what are we giving up in return…

    Recommend

  • Shabbir
    Nov 28, 2013 - 12:49PM

    Obviously nor Saudi, nor any GCC. its most probably Russia or China..

    Recommend

  • PAKhtoons
    Nov 28, 2013 - 12:51PM

    @PeaceMonger: India ???? Thanks God you didn’t name it Somalia !!!! Lolz

    Recommend

  • Aschraful Makhlooq
    Nov 28, 2013 - 12:52PM

    “@Hi:think it’s India.”
    *India can even never think about it the doing is so so so far even impossible because can never afford prosperous and sovereign Pakistan in the region….*

    Recommend

  • Muhammad Wali
    Nov 28, 2013 - 1:00PM

    Its none of the countries you people have mentioned.
    It is Guatemala

    Recommend

  • ar
    Nov 28, 2013 - 1:03PM

    i think Somalia might be financing the gas pipelineRecommend

  • riz
    Nov 28, 2013 - 1:18PM

    I think its Russia because China cant afford restrictions from their biggest export market (US). It has to be Russia, the only country who can stand face to face to America.

    Recommend

  • Pankaj
    Nov 28, 2013 - 1:24PM

    dude ! it can only be US . no other country is fool and rich enough to do this ! other option is india.

    Recommend

  • ali
    Nov 28, 2013 - 1:32PM

    All of you forget to mention one friendly country ..guess guess….itsss afganistan ..hehehehe

    Recommend

  • Nov 28, 2013 - 1:32PM

    Thank you Israel for being so generous.

    Recommend

  • mbd4u
    Nov 28, 2013 - 1:48PM

    comeon it’s not so much classified deal . Tell who fund you .

    Recommend

  • Parvez
    Nov 28, 2013 - 2:04PM

    This is fun…..my first guess attempt was shot down because it was not a country. So now I’ll guess again :
    The country is obviously Pakistan ………. how this works is upto you to guess.

    Recommend

  • Dhaka
    Nov 28, 2013 - 2:38PM

    100% sure its Banglesh

    Recommend

  • M Mehtab Alam Khan
    Nov 28, 2013 - 3:29PM

    Its some kind of greater game, to show that Pakistan can complete it with its own resources or friends . . In order to make a step forward in I.P. gas project.

    Recommend

  • Raheel
    Nov 28, 2013 - 4:21PM

    Benzair gave us zardari and IPPs (Independent Power Plants) that produced expensive electricity besides destroying environment, Zardari gave us gutter choking corruption and RPPS (Rental Power Plants) that gave us nothing and took away hundreds of millions dollars in return, this “friendly country” gives us a billion bucks to but expensive gas. Man, why everone is pushing this nation towards the gas chamber!!!???

    Recommend

  • Amit Lunia
    Nov 28, 2013 - 4:32PM

    Who is this Vicky Donor……………..!

    Recommend

  • pak patriot
    Nov 28, 2013 - 4:32PM

    Its muaritania!

    Recommend

  • Coolguy
    Nov 28, 2013 - 4:34PM

    INDIA?
    A country that doesn’t have money to provide toilet facilities and
    to be governed by mass murderer anti-pak anti-muslim fanatic
    providing $1 billion to Pakistan

    It cant get any funnier !!!!!!

    Recommend

  • alladitta
    Nov 28, 2013 - 5:22PM

    it is the Punjab government of India. They had a surplus of some 10 billion for current financial year to consume by year end in April 2014. They have posted this on the Punjab Government India website. They are giving the money interest free as neighbourly gesture.
    ;-)).

    Recommend

  • Satan
    Nov 28, 2013 - 5:22PM

    Brasil!

    Recommend

  • Last Word
    Nov 28, 2013 - 7:41PM

    It is CIA, RAW, and MOSSAD together

    Recommend

  • AP
    Nov 28, 2013 - 8:12PM

    Friendly country!! Let me guess..Saudi Arabia

    Recommend

  • RN
    Nov 28, 2013 - 8:40PM

    Russia Is Also A Friendly Country of Pakistan. Its Might Be An Offer From Russia. Because They Were Also Taking Interest In Previous Govt Tenure In This Project.

    Recommend

  • imran
    Nov 28, 2013 - 8:56PM

    I think its from one of the following countries.
    Vanuatu, Nauru, Tuvalu, Comoros, Guernsey, Tokelau, Cook Islands, Pitcairn Islands or
    Nogorno-karabach republic.
    That is why it is kept anonymous by default.

    Recommend

  • Alann
    Nov 28, 2013 - 9:26PM

    @Aschraful Makhlooq: “India can even never think about it the doing is so so so far even impossible because can never afford prosperous and sovereign Pakistan in the region….

    It was India who did not stop Pakistan’s waters even during all 4 wars started by Pakistan on India.
    it was India who airlifted alot of help to flood victims in Pakistan few years ago, much more than your own useless government did for its citizens.
    It was India who gave its consent to let Pakistani goods be exported to EU countries (GSP+ Package) on Pakistan’s request, even though it hurt India’s own exports considerably – just to help Pakistan’s dwindling economy.
    It was India that removed restrictions for Pakistani citizens above 65 years of age to freely enter India.
    It was India that gave MFN status to Pakistan, way back in 1996.
    It was India that offered Pakistan electricity readily to help overcome its energy crisis.
    What exactly did India receive in return?
    –Wars imposed on it, without provocation
    –MFN still not given
    –Pakistan objecting to India’s entry to UNSC
    –Cross border infiltration & attacks on Indian citizens
    It is Pakistan’s own politicians & military rulers that have destroyed their country in their mad lust to steal Kashmir.
    You are nothing but a victim of the “foreign hand” theory, which doesn’t affect India much but has now started to destabilise Pakistan itself. Keep hating on India/Indians instead of trying to find the truth, but of course, how will you? Half of the sites on internet are banned in Pakistan!
    Not only India, but also Iran has started building long cooncrete walls on its borders with Pakistan. Even Afghanistan hates you. Surely there must be something terribly wrong with Pakistan itself, right?

    Recommend

  • Ali
    Nov 28, 2013 - 9:56PM

    @I K:
    UAE, never. I believe they see development of Gawadar as a threat towards there own economy, Balochistan wants 250 mmcfd for consumption at the Gwadar Port so in my opinion it’s not UAE.

    Recommend

  • Parvez
    Nov 28, 2013 - 10:27PM

    Second guess connected with my first guess……..Cayman Islands.

    Recommend

  • Weirdity
    Nov 28, 2013 - 10:30PM

    It’s the ummah! It’s the invisible caliphate!

    Recommend

  • Nov 28, 2013 - 11:18PM

    Most likely Turkey or China – it could be even India – its all about ‘economic interests’ a stable and prosperous Pakistan is in many countries interests. Its time Pakistan started to rise up education and economic wise!Recommend

  • Nov 29, 2013 - 12:21AM

    No country with this name on map… “Friendly”

    Recommend

  • polpot
    Nov 29, 2013 - 3:35AM

    I would prefer that the friendly countr offered visa free entry to Pakistanis
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++
    than the 1 Bn for the gas pipeline.

    Recommend

  • polpot
    Nov 29, 2013 - 3:37AM

    “Anonymous donor: ‘Friendly’ country offers $1b for Iran-Pakistan pipeline”
    ++++++++++++++++++++++++++++++++++++++++++++++++++
    Dear Editor the abbreviation for Billion is B and not b.

    Recommend

  • polpot
    Nov 29, 2013 - 3:38AM

    Anonymous donor: ‘Friendly’ country offers $1b for Iran-Pakistan pipeline”"
    +++++++++++++++++++++++++++++++++++++++++++
    The news item reveals the bankruptcy of the recepient country.! Donations…..passing the hat around.

    Recommend

  • islooboy
    Nov 29, 2013 - 8:23AM

    USA

    Recommend

  • jay verma
    Nov 29, 2013 - 10:46AM

    Nothing comes for free – even from an Anonymous friendly donor.

    Recommend

  • Long Time Reader
    Nov 29, 2013 - 1:57PM

    There’s an obvious answer – Sierra Leone

    Recommend

  • Ashraf
    Nov 29, 2013 - 6:04PM

    Could it be Ethiopia?

    Recommend

  • Bashir
    Nov 29, 2013 - 7:58PM

    It is definitely ZARDARI through Swiss Banks

    Recommend

  • shahid
    Nov 30, 2013 - 4:43AM

    Let me put all the speculation to rest. It was a hoax.A survey conducted by CIA to see whom pakistanis consider their best friend. However the true answer is, it is Pakistan itself funding the project although It could be Iran as well. On the serious note it could be Russia as well.

    Recommend

  • Dec 7, 2013 - 10:46PM

    I’ve observed that in the world these days, video games will be the latest rage with children of all ages. There are times when it may be difficult to drag your son or daughter away from the video games. If you want the very best of both worlds, there are plenty of educational video games for kids. Interesting post.Recommend

More in Business