The Hindu : International : Pakistan, Iran "go ahead" for gas project

Online edition of India's National Newspaper
Friday, Feb 25, 2005

International

International

Pakistan, Iran "go ahead" for gas project

By B. Muralidhar Reddy

ISLAMABAD, FEB. 24. At a juncture when Teheran is engaged in a nuclear standoff with the U.S. on its nuclear programme, Pakistan and Iran have signed four important agreements to bolster bilateral economic relations.

They have agreed to set up a mechanism to ensure their implementation aimed at increasing two-way trade to $1 billion from the current level of $400 millions.

The agreements were concluded during the three-day visit of the Pakistani Prime Minister, Shaukat Aziz, to Iran, which concluded today.

Diplomatic observers here believe that the agreements elevate Islamabad-Teheran ties to a new level since they drifted apart in the aftermath of 1979 Islamic Revolution in Iran.

Pakistan has been under pressure from Washington not to favour gas pipeline from Iran pending resolution of the nuclear standoff.

During the latest visit, Pakistan and Iran have decided to "go ahead" with the $4.2- billion gas pipeline project.

Petroleum Ministers of the two countries are expected to meet here some time next month to consider possibility of a technical agreement on the pipeline.

In Teheran, the two sides also took note of the decision of the Indian Cabinet to consider joining the project and Iran indicated that it was willing to consider delivery of gas at a designated point on the border for onward transmission to India.

The Iranian Vice-President told reporters that Iran had offered a $200 million credit line to Pakistan for engineering and infrastructure projects.

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