ISLAMABAD: India and Pakistan on Monday announced the setting up of a joint working group (JWG) for energy cooperation with focus on gas pipelines.

Union Petroleum Minister Mani Shankar Aiyar made the announcement at a news conference after meeting Pakistan Prime Minister Shaukat Aziz here. The JWG is mandated to look into technical, commercial, legal and other issues related to gas pipelines.

Both countries have agreed to explore the possibilities of accessing low-cost energy from the extended neighbourhood. Pakistan is looking at gas pipeline options from Iran, Turkmenistan and Qatar and committed to take a final decision by December 31.Mr. Aiyar said the Pakistan-India gas pipeline project should "get off the ground" in January next. For the first time, Pakistan shared data with India on the energy requirements of the country as well as the options it is exploring to bridge the huge deficit.

The proposed 2,600-km Iran-Pakistan-India pipeline was one of the major options the JWG would consider. If necessary Iran, which at present is not part of the JWG, would join the discussions later to convert the project into a trilateral agreement, said Mr. Aiyar.On Sunday, he formally asked Pakistan to facilitate the entry of India into the ADB-sponsored Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline. As work on the Iran-Pakistan-India pipeline had begun earlier, it would be taken up first followed by TAP, which could be converted into the Turkmenistan-Afghanistan-Pakistan-India pipeline.

Pakistan Petroleum Minister Amanullah Khan Jadoon will visit New Delhi in July for further talks on the security and transit issue relating to the pipeline. Mr. Aiyar will visit Islamabad again in October or November to give shape to the pipeline matrix.

Boosting trade

On Tuesday, he will meet Pakistan Commerce Minister Humayun Akthar and seek the lifting of the ban on diesel imports from India to boost trade and economic ties.

The Indian Oil Corporation has offered to sell 325,000 tonnes of diesel to Pakistan during October 2005 and March 2006 at a discount.

Pakistan, which imports 4-5 million tonnes of diesel from Kuwait annually, does not have any refinery in the Lahore-Multan area.

It sought quotations from the IOC for the import of diesel in Lahore, Jhelum and Karachi.

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