A senior Foreign Office official said that a Pakistani delegation, in its visit to Tehran, expressed reservations over possible sanctions on the project due to tensions between Iran and the US.
According to a press release from the Foreign Office, the Pakistani side – including Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Petroleum Secretary Abid Saeed and Pakistan’s Interstate State Gas System Managing Director Mobin Saulat – met with Iran’s Minister of Petroleum Bijan Namdar Zangeneh at the Ministry of Petroleum in Tehran on Monday.
“We cannot move ahead with the project unless the issue of possible US sanctions is resolved,” the FO official familiar with the development said.
He added that Tehran expressed reservations over a delay in implementation of the project but the Pakistani side told Iranian authorities that the delay was not caused by Pakistan. “The delay in implementation of the project is due to possible sanctions by the US on the project and therefore Tehran should first resolve this issue,” the official said.
According to the FO statement, Pakistan and Iran decided to speed up implementation of the project and to formulate a roadmap to address the challenges and resolved to have effective coordination and cooperation.
It was also agreed that a meeting would be held shortly between the experts from both sides to review parameters for accelerating work on the project, the statement said.
“The experts will also discuss finding a way to avoid possible US sanctions to implement the project,” the official said, adding that experts would also mull over a plan of extending deadline of the project commissioning to give a waiver to Pakistan and reducing the gas price and construction contract price by Iranian firm Tadbir.
He said Pakistan had requested Iran to support the entire financing of the project amounting to $2 billion and this issue would also be discussed during experts’ meeting.
Published in The Express Tribune, December 11th, 2013.
COMMENTS (11)
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@Diretide:
He'd be in the same shoes as Sharif. No money to build - nobody willing to finance - and equally unpopular because he hadn't honored any of his campaign commitments.
If it was IK dealing this project, it would have been completed by now, because no US pressure.
@Baji Jee: It is only common sense to not court international sanctions and trouble. After all, Nawaz Sharif's main responsibility is to get Pakistan's economy back on track. If you don't understand this, ask yourself why so many economically powerful nations all heeded US demands to support sanctions. Obviously the oil pipeline will help Pakistan overcome energy issues but it would be foolish to endanger the whole nation's well being by provoking the ire of the US by defying international sanctions.
How many times have we heard chest thumping statements from Pakistani leaders that they would proceed with the pipeline regardless of sanctions? Blatant lies are told so often by Pakistani officials that few take anything you have to say seriously. The American's are spot on when they say they judge Pakistan based on what it does rather than what it says.
..so these guys did not know that there were sanctions on Iran..?? that is why it is important to come out of the cave once in a while..!!!!!!!!!!!!!
This is hilarious. This pipeline is unbelievably hilarious.
This pipeline was just a political stunt by PPP similar to establishing a "South Punjab" province.
“The delay in implementation of the project is due to possible sanctions by the US on the project and therefore Tehran should first resolve this issue,” the official said. +++++++++++++++++++++++++++++++++++++++++++ Is it me or that its truly absurd asking Tehran to resolve sanctions that its a victim of?
This project will see the completion soon and Pakistan will reap its benefits.The govt. is acting sincerely.
Ha Ha. The only real issue is now finally mentioned publicly by the FO. As if the world did not know about it. Would have been better if such useless statement was never given.
Pakistani government does not have any self respect!