News
Tuesday, February 07, 2012
Pakistan, Iran enjoy brotherly ties, says Hafeez Shaikh* Finance minister urges strengthening of bilateral relations
Staff Report
ISLAMABAD: Federal Finance Minister Abdul Hafeez Shaikh has said that Pakistan and Iran enjoy strong brotherly ties and the historic relationship provides basis for strong economic relations.
Inaugurating a bilateral trade meeting, along with Iran’s Vice President for International Affairs Ali Seedlou, the minister emphasised that Iran and Pakistan should strengthen their trade and economic ties.
During the last year, trade volume between Pakistan and Iran had reached $1.5 billion, which was below the potential of the two countries. Sources said the finance minister assured the Iranian authorities that Pakistan was committed to the multi-billion dollar gas pipeline project.
Sources further revealed that the Iranian vice president, who was on a three-day visit to Pakistan, maintained that Iran was ready to complete and inaugurate the proposed Iran-Pakistan gas pipeline project.
Despite threat of sanctions from the United States, Pakistan refused to abandon the project, saying it was beyond the scope of US sanctions imposed against Tehran. Despite strong reservations raised by Washington over Pak-Iran energy trade, Islamabad is committed to strengthening bilateral relations with Tehran, including $7.4 billion Iran-Pakistan gas pipeline project, brushing aside the US threats of sanctions.
The 2,700 kilometres-long pipeline was to supply gas for Pakistan and India, which are suffering from a lack of energy resources, but India has been evading talks. Last year, Iran and Pakistan declared they would finalise the agreement bilaterally if India continued to be absent from the meetings.
According to the project proposal, the pipeline will begin from Iran's Assalouyeh Energy Zone in the south and stretch over 1,100 kilometres in Iran. In Pakistan, it will pass through Balochistan and Sindh. But officials now say the route may be changed if China agreed to the project.
The gas will be supplied from the South Pars Field. The initial capacity of the pipeline will be 22 billion cubic metres of natural gas per annum, which is expected to be later raised to 55 billion cubic metres. It is expected to cost $7.4 billion. Referring to Iran’s 100-million-dollar assistance to Pakistan’s flood-stricken people, the Iranian vice president said that Iran’s Roads Ministry is keen to cooperate with Pakistan in reconstructing devastated areas.
Earlier on his arrival, Saeedlou said that holding seminars and meetings between Iranian and Pakistani officials and visiting delegations from both countries paved way for further improvement and consolidation of ties between the two Muslim countries. Foreign Office spokesman Abdul Basit told reporters that there was no change in Pakistan's desire as far as the gas pipeline project with Iran was concerned.
Courtesy www.dailytimes.com.pk